BREAKING: IndyMac Bank shut down by Federal Government, Huge Collapse...

Just broke on CNN.

One of the largest banking collapses in US history. Next week is going to be UGLY for the entire financial sector, the stock markets, and investors nationwide.

In other news, Oil set a new high price record today.

EDIT: Breaking on WSJ Online

http://online.wsj.com/article/SB121581435073947103.html?mod=hpp_us_whats_news

U.S. Shuts Big Bank As Crisis Intensifies

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators in one of the largest bank failures in U.S. history.

The Pasadena, Calif., thrift was one of the largest savings and loans in the country with about $32 billion in assets. It now joins an infamous list of collapsed banks, topped by Continental Illinois National Bank and Trust Co., which failed in 1984 with $40 billion of assets.

IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets. .

The convergence of disasters is extraordinary. Bush has reshaped America in his oil-loving, benefits-for-the-few image.

We here at DU saw what a second term would mean, yet however he did it, he convinced enough Americans to vote for him to get close enough to let other means put him over the top in 2004.

He and his cronies have wrecked our country. The worst is yet to come.

musta just happened overnight...

:sarcasm:

... as of today, that is. I agree, more to come.:mad:

For those old enough to remember Silverado S&L (Neil Bush) et al in the 1980's.

History repeats itself.

And, in this instance, History centers around the Bush Family Evil Empire.

Again.

And on and on and on.

I was there.

risking a lot of shit. The S&L's were going to fall apart with that kind of business since that's all they do. Originally main banks didn't do S&L and then they had special regulation before being allowed to do S&L and now a lot of them do S&L but they are protected by other forms of money making schemes so what happened to all the S&L's won't happen with the Empire Banks. Plus, the FDIC is supposed to protect our finances---or so they say.

We need McCain to sort this mess out.

It will depend on credit card defaults.

That's the thing. JP had it's own investors. When BS sold to JP, they had to let people go. That means nothing on JP.

And how does that affect Chase?

It was more of a loss for Bear Stearns not JP. JP only wanted to compensate the former workers with $500,000 pay checks as I read in FT back in Feb or so.

But no real story.

I did find this article.

http://latimesblogs.latimes.com/laland/2008/07/a-run-on-indyma.html

WSJ
http://online.wsj.com/article/SB121581435073947103.html?mod=hpp_us_whats_news

I just called my broker friend, he says he expects another 2 dozen banks to fail over the next few months.

Because Chase has been fucking up.I used to work for them and they had this crazy plan on becoming larger.

HSBC might be the only untouchable since it's a British bank.

IndyMac Seized by U.S. Regulators Amid Cash Crunch (Update3)

By Ari Levy and David Mildenberg

July 11 (Bloomberg) -- IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash.

The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.

The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.

``Given their focus on Alt-A and a heavy concentration in California, they would have suffered meaningful losses in almost any scenario,'' Brian Horey, president of Aurelian Management LLC in New York, said before the seizure was announced. Aurelian is short-selling IndyMac shares to gain from declines.



http://www.bloomberg.com/apps/news?pid=20601087&sid=atyF3ydPUlk8&refer=home

http://moneycentral.msn.com/content/P31234.asp

Could a failure at J.P. Morgan Chase (JPM, news, msgs) crash the entire financial system? Thats a scenario with credibility on Wall Street, which helps explain the recent trouncing of financial stocks.

If you own stocks, you probably dont even want to consider this question. Who wants to hear about the chance that complex financial instruments -- derivatives -- could cause an implosion that could send the stock market reeling? After the pain of the last 30 months, who wants to hear about the possibility that the worst isnt over?

And yet, I think you should read what follows to understand the potential risk. Im not here to scare anyone to death. I think the odds of a worst-case, derivative-market implosion are low -- and the odds are against even the collapse of a single major power in the current derivative market in a way that does lasting damage to that market.

But the problem is that no one -- not me or any other market commentator, not the bulls or the bears, and not even the people on Wall Street who invented these financial tools -- can tell you what those odds are. Because with stock prices so low and corporate balance sheets so leveraged and damaged, were in territory that the people who packaged these derivatives didnt consider as possibilities when they ran their tests to see how their strategies would behave. Its exactly at this point in a major market decline when unintended consequences are most likely to pop up. (For an example of unintended consequences set off by the market decline, see my last column, More surprisesthe bad kind, on how the chief executives and chief financial officers at Electronic Data Systems (EDS, news, msgs), Dell Computer (DELL, news, msgs) and Eli Lilly (LLY, news, msgs) now find themselves having to pay out hundreds of millions of dollars as a result of strategies designed to save money on stock buybacks.)

I worked for those idiots and was always a bit concerned. Now I need to have a meeting with my broker.
Thanks dude for the link and the notice. Thank your friend for me too.

I mainly chose Chase because it was the largest so I'd be secure. However, if shit went down the nation is screwed.

He gives a scenario by which Chase could collapse. He then says he's gonna predict the chance of a collapse (he says low before that). But he quickly switches to talking about whether or not a Chase collapse would bring down the whole market. He skips over really predicting it.

Anyways, I just thought that was odd at the end of the article.

My buddy says the market is completely upside down now, that all of the money is rushing towards any kind of energy, oil & renewables, and everything else is suffering right now. When oil goes from $140 a barrel to $145 a barrel in a day, that represents a 3% increase in longerm national costs. Hyper-Inflation. I got my money out 2 years ago on his advice and bought longterm CDs. Saved my ass.

worst case and wasn't feeling it. If JP goes down then basically all the banks go down. JP is the largest bank next to Citibank and they keep buying. The only thing really about JP is that its basically also government owned.


For example. If you are unemployed and you get unemployment money from the City of New York, they give you a card to get your money from a Chase bank. There are a few other City programs that are connected to Chase. Basically Chase owns NYC and keeps it afloat. That's why I doubt it will collapse however I do not like the threat to the funds I have with them.

http://www.fdic.gov/bank/individual/failed/IndyMac.html

Ouchie.

Indymac Bank - Current CD Rates and Mortgage Rates. Banking services for Individuals, Brokers & Lenders, Investors and Home Builders.
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IMB - IndyMac Bancorp, Inc. (NYSE)
0.28 -0.03 (-9.68%) Jul 11 4:00pm ET
Open: 0.31
High: 0.31
Low: 0.25
Volume*: 5,353,824
Avg Vol: 4,186,000
Mkt Cap: 28.25M

Real-time price data for NYSE. - Disclaimer
*Volume delayed by 20 minutes.

After Hours: 0.17 -0.11 (-39.29%) Jul 11 7:00pm ET

IndyMac Bancorp, Inc. (IndyMac Bancorp) is the holding company for IndyMac Bank, F.S.B. (Indymac Bank). Indymac Bank provides financing for the acquisition of single-family homes and also provides financing secured by single-family homes and other banking products to ...

Home » Company Reviews » INDYMAC BANK
INDYMAC BANK
IndyMac Bank is a publicly held company, a wholly owned subsidiary of IndyMac Bancorp, Inc. The tagline of the company is: "Raise your expectations." The corporate headquarters of the bank are in Pasadena, California. IndyMac Bank is the seventh largest savings and loan institution in the United States. The bank provides a complete line of financing products and services. Primary funding of the bank composes of bank deposits, Federal Home Loan Bank advances, long term debt and home equity loans.

IndyMac Bank provides a number of home mortgage products that are mostly first lien residential loans and huge full-documentation loans and home equity lines of credit.

http://www.prophet.net/analyze/javacharts.jsp

Change the symbol to IMB and then change it to ALL instead of 1 year, it was in the 40's in 2006.

here > http://www.latimes.com/business/la-fi-indymac12-2008jul12,1,7375643.story

The story indicates "The FDIC will reopen the bank on Monday as IndyMac Federal Bank, the OTS said." - good news for depositors.

it's just coincidence that this tsunami of a story was dumped on a Friday night.

IndyMac said yesterday that depositors had continued to withdraw money at "elevated levels" since June, when a senator urged regulators to monitor closely the bank's condition.

The disclosures, which were made in a regulatory filing, came a day after the US mortgage lender said it was shrinking its business drastically because it was no longer well capitalised, raising concerns it could fall victim to the credit crisis.

The bank said Senator Charles Schumer's letters had also prompted key lending counterparties to place additional restrictions on IndyMac's borrowings.

IndyMac said that as a result of the withdrawals and more stringent lending conditions, its current operating liquidity was about $1.7bn, compared with more than $4bn in May.

http://www.ft.com/cms/s/0/ec76eae6-4d5d-11dd-8143-000077b07658.html

The loss of revenue is all in its mind. If IndyMac would only commit to a rigorous program of corporate therapy, it could overcome the whining nabobs of negativity and shine brightly in the blazing firmament that is our strong national economy.

Speaking of those quotes, I'm wondering why I have yet to see a spliced version of McCain/Bush economic commentary. McCain really *has* been issuing Gramm-inspired parroting of Bush economic statements. He uses the exact same Bush terms of denial, like "strong fundamentals" and "rough patch."

He proved he doesn't even know what "strong fundamentals" means. When asked about it he claimed that American workers are among the world's best -- an arguable point, but one that has nothing to do with the economic definition of "strong fundamentals."

http://www.bloomberg.com/apps/news?pid=20601087&sid=atyF3ydPUlk8&refer=home

So technically not death, more like a major downsizing.

Spiro T. Agnew would have fit right into the McLame campaign.

:sarcasm: :sarcasm:

Gramm..what a fuckstick.


(edited to include the sarcasm tags as many DUers only read the subject and might incorrectly perceive that the post's subject is sincere)

is DESTROYING AMERICA'S STOCK MARKET! :rofl: Just because "Indy Mac" goes down you think this is just separating the BIG BOYS from the SMALL PLAYERS....??? :shrug:

Let me go back and edit my post as to not further your discomfort.

hypersensitive and stuff.

Do NOT look behind the curtain.

:scared:

immigrants from my experience. That's the problem with a lot of bank runs, it's due to word of mouth that pics up momentum until mass hysteria and the bank goes under. Luckily for them they're not eliminated just downsized, so they can always grow again (that is if the economy ever stabilizes).