Submitted by akbarpunjabi on July 11, 2008 - 3:56pm.
I'm glad I didn't choose to bank with them recently as they have had the highest rates on several products in recent months. It would be a pain to have to deal with the FDIC in my opinion especially when there is so much else to deal with.
Do I hear asset firesale?
Hmmmm. I wonder if there are any homes in SD.....
anyone got a REO link for IndyMac?
IndyMac Bank was shut down by regulators Friday as the mortgage crisis claimed one of its largest victims.
The Pasadena thrift, with $32 billion in assets, was a prolific lender during the housing boom, specializing in so-called alt-A loans that allowed buyers to borrow with little documentation of their finances. Losses are expected to mount among alt-A mortgages as more borrowers decide to walk away from residential investment property plunging in value.
IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion, based on the regulator's preliminary estimates.
The bank will reopen Monday as IndyMac Federal Bank, run by the Federal Deposit Insurance Corp. At the time of the bank's closing today, about 10,000 depositors had approximately $1 billion in total uninsured deposits. The bank held $19 billion in deposits at the time of its failure.
The FDIC will operate IndyMac Federal Bank by selling IndyMac's assets at fire-sale prices.
IndyMac (NYSE: IMB) was set up by Countrywide Financial Corp. in 1985, but the two companies cut ties in 1997 and became direct competitors.
Bank of America (NYSE: BAC) acquired troubled Countrywide on July 1.
"IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion, based on the regulator's preliminary estimates."
You know...somewhere between 4 BILLION and 8 BILLION.
Submitted by SDEngineer on July 11, 2008 - 4:32pm.
OC Burns wrote:
"IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion, based on the regulator's preliminary estimates."
You know...somewhere between 4 BILLION and 8 BILLION.
Quite a margin of error, eh?
With accountants like these, who needs thieves?
Presumably because a ton of their real assets are in "hard-to-value" hard assets like REO properties. Until the regulators can actually do some research on them, do you really think that what IndyMac has them "on the books" for is the real value that they'll bring on the market?
Something interesting I read about Bank of America..
Is this a precursor to BAC just walking and saying "sorry what $38billion countrywide debt? We don't recognize there is $38billion in debt. Thanks for playing."
-------
BofA shuffles Countrywide debt
Bank of America Corp. has moved Countrywide Financial Corp.'s debt to an indirect unit owned by the banking giant, leaving it unclear whether BofA will back Countrywide's huge debts.
According to a filing this week with the Securities and Exchange Commission, Countrywide says Red Oak Merger Corp. assumed all of the Calabasas, Calif.-based mortgage company's financial obligations in conjunction with the July 1 purchase of Countrywide by BofA for $2.5 billion.
BofA created Red Oak and remains its owner. Red Oak has since been renamed Countrywide Financial Corp.
The SEC filing did not discuss BofA's long-term plans for Countrywide's debt.
In May, BofA threw the status of Countrywide's debt in doubt when it said in a separate SEC filing that it could give "no assurance" that it would back the mortgage lender's debt of $38 billion.
The senior senator from New York seems to pay a lot of attention to California-based financial institutions like IndyMac and Countrywide. Meanwhile he backs the bailout of New York's Bear Stearns, and urges deregulation of, and unwavering support for, Fannie Mae, the Democratic sacred cow.
I'm no fan of the current administration, but Schumer's actions are starting to look a little bit odd to me.
it looks like this is the real start of the next great depression very scary times indeed.its only going to get worse.this is question for anybody.
what can help to fix these problems raising interest rates and to stop printing so many dollars will not help in this early stage imoho ? i see very dark days for the usa. i think we still are the best country and will pull out of this, that gives me hope at least.
According to the Federal Deposit Insurance Corporation, 10,000 customers of failed IndyMac Bancorp Inc could lose as much as $500,000. And the FDIC tells CNNMoney that the failure also will cost the Deposit Insurance Fund between $4 billion and $8 billion...
I think many may be retirees losing their nest egg. It baffles me how that could happen when IndyMac has been on glide path for a while and everywhere on news.
it looks like this is the real start of the next great depression very scary times indeed.its only going to get worse.this is question for anybody.
what can help to fix these problems raising interest rates and to stop printing so many dollars will not help in this early stage imoho ? i see very dark days for the usa. i think we still are the best country and will pull out of this, that gives me hope at least.
The best at what, Tucker? American exceptionalism is fine (if you choose), but if we continue to believe that we are "the best country," no matter what we do to others, no matter what our financial situation, no matter what rights are lost,, no matter what our K-12 education system accomplishes, no matter what corruption we see, and no matter what we actually turn into, then what does being "the best" really mean?
I agree that the US is a good place to live. But let's not be starry-eyed to the point of ignoring reality. The US has fallen far from its' highs in almost all fields. Perhaps if Americans believed that we WERE the best, and can be again, we would ditch our apathy and begin rebuilding a great Republic.
Until then, hoping that some suit in DC or some MBA in Manhattan swoops in to save the day is pure Cassandra.
We're in deep shit. And we have earned it. The question is: will we change our ways or continue down the drain?
Submitted by cooprider on July 14, 2008 - 10:30am.
So is Countrywide to Subprime what IndyMAC is to Alt-A? from what I've read so far it sounds like they were Alt-A rather than subprime.
Is this a sign of how much worse Alt-A will be than subprime? Countrywide was pretty bad, but IndyMAC wasn't even on the FDICs list of unhealthy banks last quarter.
A little late for that, oh well. What is funny is that those of you familiar with Pasadena will realize that Wamu has a big building about a block away. I wonder how many of those people lining up today will go deposit their money in Wamu right next door.
Submitted by The OC Scam on July 14, 2008 - 3:42pm.
John Bovenzi, the chief operating officer of the Federal Deposit Insurance Corp., reassured consumers that U.S. bank failures have been rare in the past, and that if more banks do fail, the government has enough in reserve.
"I think the important point to make is that, historically, only a very small percentage of the banks on our problem banks list ever failed," he said on CNN late Sunday. "While there are 90 banks on the list, there would be no expectation that 90 of those banks would fail."
Bovenzi took the helm of what will be IndyMac Federal Bank when the government stepped in late Friday afternoon to save the struggling institution.
The Office of Thrift Supervision transferred control of IndyMac to the FDIC because it did not think the lender could meet its depositors' demands.
"If there are other bank failures in the coming weeks, I think the same message, if your accounts are under $100,000, you have absolutely nothing to worry about," he said. "You can still find ways to protect more if you like."
THE GUY AT THE FDIC SAYS IF ANYMORE BANKS FAIL THIS WEEK??? DOES HE KNOW WHICH ONE??
Did anybody see this list before Indymac failed. I do not see Bank United or Downey on their weak list, and thestreet.com is partly owned by Kramer (who can not be trusted). Remember he said Downey S&L was a $100 stock a year ago, and he claims he made a lot of money shorting banks in the 90's?
The following is a must read. Likely, the pattern was repeated at many other banks.
My Experience at Indy Mac: Fraud, Corruption, Criminality
I’ve shared some tidbits with you in the last month about my experience at IndyMac as their chief commercial appraiser from October 2001 to the end of March 2002. Now that IndyMac has been seized by FDIC and their legal staff presumably unemployed, I will tell the rest of the story. Some people tell me that it must have been hell for me, but I look back on it as an adventure, like sailing into the “Perfect Storm”, a perfect storm of corruption and incompetence, and living to tell about it....
Great read!!! If it isnt bad enough that the residential market was funded by Liar Loans, the high-end commercial deals had their fair share of complete fraud going on as well!!
And now banks are going under with high levels of uninsured dollars in them!?
Credit contraction, unemployment rising, home prices declining and now banks failing with lots of accounts without insurance!? Add commercial real estate fraud. Wealth is bleeding out onto the streets!!! I dont see how this cant cause big delation.
Holy cow. Not surprising but still, what times we are in.
I'm glad I didn't choose to bank with them recently as they have had the highest rates on several products in recent months. It would be a pain to have to deal with the FDIC in my opinion especially when there is so much else to deal with.
$1 Billion of uninsured deposits, yes uninsured.
Do I hear asset firesale?
Hmmmm. I wonder if there are any homes in SD.....
anyone got a REO link for IndyMac?
IndyMac Bank was shut down by regulators Friday as the mortgage crisis claimed one of its largest victims.
The Pasadena thrift, with $32 billion in assets, was a prolific lender during the housing boom, specializing in so-called alt-A loans that allowed buyers to borrow with little documentation of their finances. Losses are expected to mount among alt-A mortgages as more borrowers decide to walk away from residential investment property plunging in value.
IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion, based on the regulator's preliminary estimates.
The bank will reopen Monday as IndyMac Federal Bank, run by the Federal Deposit Insurance Corp. At the time of the bank's closing today, about 10,000 depositors had approximately $1 billion in total uninsured deposits. The bank held $19 billion in deposits at the time of its failure.
The FDIC will operate IndyMac Federal Bank by selling IndyMac's assets at fire-sale prices.
IndyMac (NYSE: IMB) was set up by Countrywide Financial Corp. in 1985, but the two companies cut ties in 1997 and became direct competitors.
Bank of America (NYSE: BAC) acquired troubled Countrywide on July 1.
"IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion, based on the regulator's preliminary estimates."
You know...somewhere between 4 BILLION and 8 BILLION.
Quite a margin of error, eh?
With accountants like these, who needs thieves?
You know...somewhere between 4 BILLION and 8 BILLION.
Quite a margin of error, eh?
With accountants like these, who needs thieves?
Presumably because a ton of their real assets are in "hard-to-value" hard assets like REO properties. Until the regulators can actually do some research on them, do you really think that what IndyMac has them "on the books" for is the real value that they'll bring on the market?
Who is next? Downey, Washington Mutual, or somebody else?
WaMu is next.
Downey is toast too.... but WaMu is next.
Downey is toast too.... but WaMu is next.
Lehman and Merrill Lynch appear to be going under too sooner or later. Lehman first then Merrill.
John
Downey is toast too.... but WaMu is next.
Lehman and Merrill Lynch appear to be going under too sooner or later. Lehman first then Merrill.
John
Lehman is definitely toast.
I'd add Wachovia to the terminal list. Give them 6 weeks at most.
I was concerned about Countrywide bank but now they seem safe after the acquisition by BoA
Something interesting I read about Bank of America..
Is this a precursor to BAC just walking and saying "sorry what $38billion countrywide debt? We don't recognize there is $38billion in debt. Thanks for playing."
-------
BofA shuffles Countrywide debt
Bank of America Corp. has moved Countrywide Financial Corp.'s debt to an indirect unit owned by the banking giant, leaving it unclear whether BofA will back Countrywide's huge debts.
According to a filing this week with the Securities and Exchange Commission, Countrywide says Red Oak Merger Corp. assumed all of the Calabasas, Calif.-based mortgage company's financial obligations in conjunction with the July 1 purchase of Countrywide by BofA for $2.5 billion.
BofA created Red Oak and remains its owner. Red Oak has since been renamed Countrywide Financial Corp.
The SEC filing did not discuss BofA's long-term plans for Countrywide's debt.
In May, BofA threw the status of Countrywide's debt in doubt when it said in a separate SEC filing that it could give "no assurance" that it would back the mortgage lender's debt of $38 billion.
The next 60 days are going to be historical for the financial markets!
Lets revist an important graph from the past...
The NegAms/Option Arms are the resets coming up..
(Click on image followed by clicking on the 'original' link to get the clear, un-butchered image.)
The senior senator from New York seems to pay a lot of attention to California-based financial institutions like IndyMac and Countrywide. Meanwhile he backs the bailout of New York's Bear Stearns, and urges deregulation of, and unwavering support for, Fannie Mae, the Democratic sacred cow.
I'm no fan of the current administration, but Schumer's actions are starting to look a little bit odd to me.
it looks like this is the real start of the next great depression very scary times indeed.its only going to get worse.this is question for anybody.
what can help to fix these problems raising interest rates and to stop printing so many dollars will not help in this early stage imoho ? i see very dark days for the usa. i think we still are the best country and will pull out of this, that gives me hope at least.
http://www.indymacbank.com/
IndyMac may be costliest bank failure ever
According to the Federal Deposit Insurance Corporation, 10,000 customers of failed IndyMac Bancorp Inc could lose as much as $500,000. And the FDIC tells CNNMoney that the failure also will cost the Deposit Insurance Fund between $4 billion and $8 billion...
http://money.cnn.com/2008/07/12/news/com...
I think many may be retirees losing their nest egg. It baffles me how that could happen when IndyMac has been on glide path for a while and everywhere on news.
what can help to fix these problems raising interest rates and to stop printing so many dollars will not help in this early stage imoho ? i see very dark days for the usa. i think we still are the best country and will pull out of this, that gives me hope at least.
The best at what, Tucker? American exceptionalism is fine (if you choose), but if we continue to believe that we are "the best country," no matter what we do to others, no matter what our financial situation, no matter what rights are lost,, no matter what our K-12 education system accomplishes, no matter what corruption we see, and no matter what we actually turn into, then what does being "the best" really mean?
I agree that the US is a good place to live. But let's not be starry-eyed to the point of ignoring reality. The US has fallen far from its' highs in almost all fields. Perhaps if Americans believed that we WERE the best, and can be again, we would ditch our apathy and begin rebuilding a great Republic.
Until then, hoping that some suit in DC or some MBA in Manhattan swoops in to save the day is pure Cassandra.
We're in deep shit. And we have earned it. The question is: will we change our ways or continue down the drain?
So is Countrywide to Subprime what IndyMAC is to Alt-A? from what I've read so far it sounds like they were Alt-A rather than subprime.
Is this a sign of how much worse Alt-A will be than subprime? Countrywide was pretty bad, but IndyMAC wasn't even on the FDICs list of unhealthy banks last quarter.
And what about all their REOs?
People are lining up around the block to take their money out today:
http://www.latimes.com/business/la-fi-in...
A little late for that, oh well. What is funny is that those of you familiar with Pasadena will realize that Wamu has a big building about a block away. I wonder how many of those people lining up today will go deposit their money in Wamu right next door.
John Bovenzi, the chief operating officer of the Federal Deposit Insurance Corp., reassured consumers that U.S. bank failures have been rare in the past, and that if more banks do fail, the government has enough in reserve.
"I think the important point to make is that, historically, only a very small percentage of the banks on our problem banks list ever failed," he said on CNN late Sunday. "While there are 90 banks on the list, there would be no expectation that 90 of those banks would fail."
Bovenzi took the helm of what will be IndyMac Federal Bank when the government stepped in late Friday afternoon to save the struggling institution.
The Office of Thrift Supervision transferred control of IndyMac to the FDIC because it did not think the lender could meet its depositors' demands.
"If there are other bank failures in the coming weeks, I think the same message, if your accounts are under $100,000, you have absolutely nothing to worry about," he said. "You can still find ways to protect more if you like."
THE GUY AT THE FDIC SAYS IF ANYMORE BANKS FAIL THIS WEEK??? DOES HE KNOW WHICH ONE??
Well I just spent the whole afternoon at two banks, naming beneficiaries, opening accounts, closing accounts, shuffling funds. What a pain!
Tomorrow I'll visit two more banks... It's an all-day task but I'll sleep much better by the end of this week.
I'm not in a panic but am just complaining that it takes so long for banks to process accounts. I wish I could do all these things online.
Well I just spent the whole afternoon at two banks
If you are not in great hurry, you can setup and transfer to many online accounts like HSBC, GMAC Bank, ETrade, Countrywide, FNBO, WTCDirect etc.,
As long as you split the funds to under $100K, you don't have to dig deep into their financial health. I just go by info at http://www.bankrate.com/
Here is a list of safest and weakest banks from Weiss ratings from June 20, 2008.
No Surprise, Indymac topped the list.
http://www.weissratings.com/HL_Bank.asp
Did anybody see this list before Indymac failed. I do not see Bank United or Downey on their weak list, and thestreet.com is partly owned by Kramer (who can not be trusted). Remember he said Downey S&L was a $100 stock a year ago, and he claims he made a lot of money shorting banks in the 90's?
here is older thread where we discussed banks. too bad the older list for weiss is gone
http://piggington.com/is_your_bank_safe
thanks to internet archive we have from July 07
http://web.archive.org/web/2007080318433...
netbank #1 weakest, it was gone in 6 months.
no matter what corruption we see
The following is a must read. Likely, the pattern was repeated at many other banks.
My Experience at Indy Mac: Fraud, Corruption, Criminality
I’ve shared some tidbits with you in the last month about my experience at IndyMac as their chief commercial appraiser from October 2001 to the end of March 2002. Now that IndyMac has been seized by FDIC and their legal staff presumably unemployed, I will tell the rest of the story. Some people tell me that it must have been hell for me, but I look back on it as an adventure, like sailing into the “Perfect Storm”, a perfect storm of corruption and incompetence, and living to tell about it....
http://bigpicture.typepad.com/comments/2...
Great read!!! If it isnt bad enough that the residential market was funded by Liar Loans, the high-end commercial deals had their fair share of complete fraud going on as well!!
And now banks are going under with high levels of uninsured dollars in them!?
Credit contraction, unemployment rising, home prices declining and now banks failing with lots of accounts without insurance!? Add commercial real estate fraud. Wealth is bleeding out onto the streets!!! I dont see how this cant cause big delation.