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.
