2008-07-11 — ml-implode.com
Update - 2008-07-11: (End of day - 3:57 pm PDT) "On, Friday, July 11, 2008, IndyMac Bank, FSB ("IndyMac Bank") was closed by the Office of Thrift Supervision ("OTS") and the Federal Deposit Insurance Corporation ("FDIC") was appointed as Receiver (the "Receiver"). Under the laws of...
Here is confirmation and more details from the LATimes and CNNMoney. Some interesting details from the CNN article:
According to the FDIC, IndyMac's failure will result in up to $500 million in lost deposits out of $1 billion in uninsured deposits held by 10,000 customers. The agency says the failure will cost the Deposit Insurance Fund between $4 billion and $8 billion, based on preliminary estimates.
"It's possible this will be the most costly bank failure in history, but it's too soon to say," FDIC Chairman Sheila Bair said in a conference call late Friday night. The failure "could also affect premiums paid by all banks for deposit insurance," she added.
I would love to see how the FDIC would pay out much more than $5 billion. They could start selling Treasuries, but this is the absolute worst time for that, given the soaring funding needs of the Federal government, and the sensitivity of interest rates.
They are going to try to sell IndyMac for 90 days. I can't envision any buyers enthusiastic or able to take on the business "whole", including all future liabilities.
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Comments:
Wholesalemtgguy at 09:39 2008-07-12 said:
Hate to see the pain this causes innocent people and the economy. As for the management team (or should I say mis-managenent) they deserve what they get. Yes, the comments of IMB=IndyMac Broke, etc..... It was something we saw comming down the road for over a year now. They had no idea what was happening (or refused to listen) in thier own back yard. While they cut production staff, mgt salaries were cut 5%. Another sign of their arrogance. Alot of former mgrs have alot of info on the lies and deception they push. There are stories galore. ugh! PermalinkAristotle at 10:12 2008-07-12 said:
It's a whole new bank seizure environment. Watch it live: http://abclocal.go.com/kabc/index Senior citizens trying to get into closed bank: http://video.knbc.com/player/?id=275106 Sad to say, not everyone got their uninsured deposits out of the bank. The FDIC and press are saying there are $1 Billion in uninsured deposits. PermalinkWholesalemtgguy at 10:59 2008-07-12 said:
Having gone thru the Continental Illinois mess and now this-- the signs were all over it. It hurts the employees that may not have options and are out in the cold. That is the real pain and suffering. Yes thousands were offered a severence package, or 'told to take it'. Some were told to leave while they could--- a year ago!! hmmmm what did they not 'fully ' disclose back then.....a bit of a shell & pea game??? Now Financial Freedom is not worth enough to sell...and the nature of reverse mortgages, the funding obligations will grow...those will be sold off and it will be a mere shadow of itself. So many are facing worse times. Mike Perry and his buddies could have coughed up their fat pay checks to those that really need it... gee--he told the Board of Directors to cut his $1mm cash compensation by 50%. how generous in the last 90 days. The waste- expense accounts, equipment, entertainment (yea - right) etc the gross mismanagement and breach of duty the Sr. management is all guilty of...... I clearly have no sympathy for them. Only the victims of this mess. It will go so very deep in the economy-- Permalinkabenavraham at 11:33 2008-07-12 said:
Oh c'mon already people - Get with the PROGRAM! Get out of your MENTAL RECESSION. Pull your self up by the BOOTSTRAPS! Ain't none of this real - it's all hype - Foreclosure Phil (Graham) has ALREADY addressed this ISSUE - Now go eat some Phucking CAKE already and QUIT your GD Whining! :lol: Foreclosure Phil by David Corn Who’s to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown. Yet has Gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain’s presidential campaign and advises the Republican candidate on economic matters. He’s been mentioned as a possible Treasury secretary should McCain win. That’s right: A guy who helped screw up the global financial system could end up in charge of US economic policy. Talk about a market failure. Permalinkadd a comment | go to forum thread
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