IndyMac seized by regulators, marking second largest bank failure in U.S. history.
IndyMac seized by regulators, marking second largest bank failure in U.S. history.
Late yesterday, the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS) “took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.” The bank has succumbed to “huge losses from defaulted mortgages made at the height of the housing boom”:
Federal authorities estimated that the takeover of IndyMac, which had $32 billion in assets, would cost the FDIC $4 billion to $8 billion. Regulators said deposits of up to $100,000 were safe and insured by the FDIC.[...]
As the bank was shuttering offices and laying off employees nervous … depositors were pulling out $100 million a day. The bank’s stock price had plummeted to less than $1 as analysts predicted the company’s imminent demise.
The takeover of IndyMac came amid rampant speculation that the federal government would also have to take over lenders Fannie Mae and Freddie Mac, which together stand behind almost half of the nation’s mortgage debt.
Indymac’s website has been replaced with a terse notice from the FDIC informing the bank’s customers.
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I guess there’s gonna be a lot of fat Indy Mac ex-employees pretty soon…
July 12th, 2008 at 2:37 pmWhat if this bank failure suggests that the Republicans can’t keep their fingers in the economic dike until after the election? That a forthcoming economy meltdown is coming sooner, bigger, faster and harder than anyone is letting on? That it will hit Bush like Katrina hit the Gulf Coast, instead of washing up on the shores of Obamaland? Either way, it won’t be a picnic for any of us. Heckuva job Bushie!
July 12th, 2008 at 2:46 pmthe world according to Phil Graham;This is all your heads you bunch of sissy whiners.
July 12th, 2008 at 2:47 pmOnly the beginning more to follow
July 12th, 2008 at 2:49 pmjo6pac
The race to the bottom continues.
… and it’s all chuck schumer’s fault!
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAYLeK3YAie4&refer=home
he shouldn’t've “expressed concern”… the noive!
July 12th, 2008 at 2:51 pm…and so it begins…
July 12th, 2008 at 2:57 pmre: chuck feney @2 -
a caller to randi rhodes made a prescient observation concerning obama’s embrace of faith-based help – in the coming depression that may be all we have to keep people alive… maybe he knows how bad it’s gonna get, and knows he’ll need all the help he can get.
July 12th, 2008 at 3:00 pmChuck Feney Says:
What if this bank failure suggests that the Republicans can’t keep their fingers in the economic dike until after the election? That a forthcoming economy meltdown is coming sooner, bigger, faster and harder than anyone is letting on? That it will hit Bush like Katrina hit the Gulf Coast, instead of washing up on the shores of Obamaland? Either way, it won’t be a picnic for any of us. Heckuva job Bushie!
Not just Republicans:
http://www.wsws.org/articles/2008/jul2008/econ-j12.shtml
July 12th, 2008 at 3:01 pmA question:
My mortgage is with IndyMac but has about ten years seasoning and at a reasonable rate with a loan to value of less than 40%so there is no cause for foreclosure. Is it safe to assume that since the company went out of business I have no obligation to repay the balance? It seem like the other side of the coin to me. If I were to default on the loan and lose the house because of foreclosure IndyMac would get and keep the house. Since they are the ones in default I should be entitled to the house free and clear. Do you suppose Gramm and McPain could arrange it for me?
July 12th, 2008 at 3:08 pmThe coming Bush-McCain-Gramm depression, sponsored by Bush, McCain and Gramm and Republican corporations. Republicans these days are just vile and stupid and greedy, caring not how their selfish, destructive policies affect other people. McCain recently called the funding of the social security system “a total disgrace.” I guess that he was offended by the notion of people helping other people, i. e., workers paying some Social Security tax to help retired senior citizens in their old age. McCain would seem to prefer a medieval system of peasants, serfs and the tiny ruling class lording it over everyone else.
July 12th, 2008 at 3:17 pmBear stearns gives us all a good look at what happens when our financial elite make stupid mistakes. Got your diamond-crusted parachute?
July 12th, 2008 at 3:17 pmwhining.
all in our heads.
blah, blah, blah,
*
good luck.
$
July 12th, 2008 at 3:20 pmThese guys must have been pretty bad to get taken over. Guess they didn’t have enough friends in BushCo.
July 12th, 2008 at 3:26 pmThanks, Tanqueray.
The questions were really rhetorical in that I was trying to find out how it felt to be a Rethuglican as that is certainly their way of thinking.
ForTruth Says:
“These guys must have been pretty bad to get taken over. Guess they didn’t have enough friends in BushCo.”
I would suggest that they were real good Bushco buddies, ala Ken Lay and Enron. Just more gouging middlemen who will take theirs and run to Paraguay with KKKarl. La Estancia IndiMaca, here we come!
July 12th, 2008 at 3:48 pmMcCain fix of the economy is all about cutting taxes and allowing permenant tax cuts…but if things go bad..there might not be enough taxes to take by the Treausry to begin with for McCain to start his refunding scheme.
Of course for a guy like Phil Gramm,McCain economics brain, it is all about whining.
July 12th, 2008 at 3:49 pmRepugs claim to be strong on defense and finance. If this all weren’t so horribly disastrous, it would be hilarious irony.
July 12th, 2008 at 3:49 pmMaybe it should be La Estancia PoloCaca.
July 12th, 2008 at 3:50 pmForTruth Says: These guys must have been pretty bad to get taken over. Guess they didn’t have enough friends in BushCo.
They were based in California, you know – the state that allows gay marriage…
CNN said that the bank’s problems were the result of many people taking their money out of the bank in a very short amount of time, exceeding the cash the bank actually had available.
I’m guessing the Bush Regime didn’t consider that taxing the American people, who are the real generators of our economic condition, would lead to financial chaos. Chalk up nother for the Bush-Cheney Depression 2008…
July 12th, 2008 at 3:52 pmMarie Says: Repugs claim to be strong on defense and finance. If this all weren’t so horribly disastrous, it would be hilarious irony.
Yeah, it never seems to be that the real culprits suffer in these situations – they just milk the American financial cow a little longer, no mtter how painful the teets, and make sure that they themsleves don’t feel a thing…
Further proof that Trickle Down Economics don’t work.
July 12th, 2008 at 3:54 pmIndyMac Bancorp:
CURRENT BOARD MEMBERS OR DIRECTORS
Louis Caldera Government 1-Apr-1956 US Secretary of the Army, 1998-2001
Lyle Gramley Economist 14-Jan-1927 Former Federal Reserve governor
Hugh M. Grant Business c. 1936 Former Partner, Ernst & Young
Lydia H. Kennard Business c. 1954 Los Angeles World Airports
John Seymour Politician 3-Dec-1937 Mayor of Anaheim, 1978-82
Bruce G. Willison Business c. 1949 President, Home Savings and Loan, 1996-98
PAST BOARD MEMBERS OR DIRECTORS
Robert J. Donato Business c. 1940 Former UBS, PaineWebber executive
James R. Ukropina Attorney 1937 Former Partner, O’Melveny & Myers
Via NNDB
http://www.nndb.com/company/780/000125405/
Just follow the Names & Links….All Roads lead to The Bush Crime Family, The Federal Reserve, Phil Gramm & USB, Enron,
PNAC, The Military Industrialists, etc……AMAZING!!!
Like George Carlin said:
July 12th, 2008 at 3:55 pm“It’s a big club, and you ain’t in it. You and I are not in the big club.”
And so it begins……
July 12th, 2008 at 4:10 pm..in what regulators called the second-largest bank failure in U.S. history..
And coming in at #1:
Continental Illinois National Bank and Trust Company whose assets totaled over $40 billion in 1984.
#1 under GOP drooling idol Jelly Bean Brain Reagan. #2 under GOP war criminal GW Bush.
That GD Clinton!
July 12th, 2008 at 4:23 pmLokidog is so right, it hurts.
July 12th, 2008 at 4:36 pmThe worst bank collapse occurred in Chicago during Raygun’s term. The second worst occurred during Shrub the sh!thead’s term.
Pappy Bush couldn’t clean it up – it took a Democrat to do so. A Democrat will have to do it again.
Update
Over at the Wonk Room, Jared Bernstein argues that the potential meltdown of the home mortgage bank industry highlights the economic ignorance of Phil Gramm.
Phil Gramm’s legislation caused the meltdown of the home mortgage bank industry. Is he ignorant or is he just evil?
July 12th, 2008 at 5:07 pmPhil Gramm is like the schoolyard bully who beats up a smaller kid, takes his lunch money, and then tells him to stop whining.
July 12th, 2008 at 5:11 pmshoeless
Phil Gramm qualifies as ignorant andevil. I repectfully add “venal” to the nomenclature.
This is ugly folks. IndyMac won’t be the second largest bank failure by the time of the turnaround. Hope Obama is up for it because he sure has his work cut out for him.
[somewhat off topic but the NAACP convention is in my town this weekend and it sure is gratifying to this white boy to see one of the most Republican metro areas in the nation dealing with the recognition that the next POTUS is likely to have a better tan than the self-proclaimed local leaders.]
July 12th, 2008 at 5:22 pmQuestion paleolib:
How on earth did a black Democrat get elected as mayor of Cinncinnati? Did all the rednecks move to Covington?
July 12th, 2008 at 5:30 pmThis administration has failed miserbaly in addressing both the banking crisis as well as the energy crisis, and the American people are going to have to pay a very heavy financial price for federal regulators that waited far too long to do anything about Indy’s financial problems. The bank was insolvent and should have been closed down months ago.
July 12th, 2008 at 5:31 pmIf you want to be fair to the managers at IndyMac, it would have been better for them to quit months ago which in turn could have possibly brought in new management that may have solved the banks problems sooner. But no and so typical of the Republican mind set. As many have said before, denial isn’t just the name of a river in Egypt.
Brain,
World Socialist Web Site? For real? Where on Earth did you dig up that pathetic web site. Christ you people will look under any rock to support your dillusions.
The party in charge of every branch of our governemt for certainly the first six years of this millenium and the party most in love with the notion of deregulation as the answer to every question is responsible for this mess, the Republic666ans.
Just as the Savings and Loan crisis of Rayguns watch with the resultant dissolution of say, for example, Silverado savings with the early Bush crime family getting off without so much as a smudge on their Armani suit, this crisis is borne of deregulation and cutbacks in oversight activities.
I suppose it’s just a coincidence that this happens every time a Republican serves two terms, when he gets by virtue of the fact that he cant serve in office a third time the pleasure of doing just exactly what he wants which is looting our economy by shifting enormous amounts of money from one segment of our economy to another, most notably their cronies, again see Silverado Savings for a good example.
Barney Franks indeed! You find a couple Democratic oarsmen on the great crooked Republic666an ship BushCo and holler like you’ve found something. Nice try.
July 12th, 2008 at 5:42 pmThe implode-o-meter is up to 266, and this latest, greatest, domino is not the last one to fall.
July 12th, 2008 at 5:52 pmshoeless
The city of Cincinnati is about 45% African American. The two main candidates for mayor in the last election were both Dems. Most of the bad stuff you hear relates to the surrounding county and the city’s semi-competent, semi-racist police force (and the crazy sheriff of Hamilton County). Once you get out into the suburban counties whether in Ohio, Kentucky or Indiana it gets pretty grim pretty fast. Nice to see Obama making a run in SW Ohio though both in the primary and in the general. Believe it or not, some of my more hardnosed colleagues are at least listening.
July 12th, 2008 at 5:54 pm#20
You used a term incorrectly. The Repubilcan economic theory is correctly called “Tinkle Down Economics” or more appropriately “Piss on Economics”
Otherwise you have been very accurate in you observations.
Thanks
July 12th, 2008 at 5:55 pmBanks are different than “Savings and Loans”? Just checking? Now what was Keating’s beef with pornography again?
July 12th, 2008 at 6:03 pmOne of the things I have never understood about Republicans is their lack of comprehension of history. The reason government regulation exists is because unrestrained capitalism is incredibly destructive to a society. Anti-Trust legislation was put into place to breakup large corporations that controlled whole industries and kept prices high and supplies low to maximize profits.
We saw the way corporations behaved before the Great Depression. The era of the robber barons preceeded that. A very few controlled huge amounts of wealth and did everything possible to eliminate any competition.
For some reason current Republicans all want to believe that this won’t happen again or even if it does it won’t happen to them.
I generally don’t have a very high opinion of these morons.
July 12th, 2008 at 6:06 pmrocks911 Says:
Brain,
World Socialist Web Site? For real? Where on Earth did you dig up that pathetic web site. Christ you people will look under any rock to support your dillusions.
“You people?” And who might that be?
The fact is, your precious Democrats are as crooked as the loathsome Republicans when it comes to kissing the Wall Street Butt. So when you come out of Hillaryland, Obamaworld, or McCain Inc, you will see the big picture.
BTW, WSWS usually takes the side of the oppressed. I guess that wouldn’t be you?
July 12th, 2008 at 6:12 pmI will soon be a resident of Cincinnati. My wife is an 8th generation native. It is my understanding that when the people elect their City Council, the highest vote-getter of those elected to the city council becomes the mayor. Is that correct Paleolib?
July 12th, 2008 at 6:17 pmI see the big picture just fine, history repeats with another record breaking dissolution of our banking system under the watch of a Republic666an administration.
This time though on a grander scale, with a lately oft-repeated comparison to the Great Depression, nice job BushCo.
I remember things being quite a bit better under the Clinton administration throughout its entirety until the end, whereas BushCo has been bookended by recessions with lackluster performance in between.
I read an article the other day recognizing the performance of the stock market under BushCo’s watch as being nearly as bad, or second to, the performance of the market preceeding the Great Depression. There’s that comaprison again, the Great Depression.
July 12th, 2008 at 6:24 pm“Banks are different than “Savings and Loans”? ”
Yep, and circles are different than squares, but they are both shapes, mkay?
July 12th, 2008 at 6:34 pmrocks911 Says:
I see the big picture just fine
I remember things being quite a bit better under the Clinton administration throughout its entirety until the end, whereas BushCo has been bookended by recessions with lackluster performance in between.
What proof is the moonshine you are drinking there?
Clinton initiated NAFTA, and I would imagine you didn’t lose your job because of that, so you personally would not be affected. Of course, millions of Americans are still feeling the result of thatcapiulation to Big Business.
So, in effect, you don’t see the big picture, but a myopic, romantic view of the “Party of the People”, that will be so much better than BushCo. They are globalists, the same as the Republicans, with a different mask.
July 12th, 2008 at 6:51 pmSo now the Republican argument is that Dems are just as bad? Well, some of them, but not nearly as many. I agree all of politics is corrupt. The 2 party system is a sham. The upper 1% control politics. Dems and Republicans. I can find more Dems who are above board than creepy dead-baby on the mantle Republicans.
July 12th, 2008 at 6:54 pmActually I’m on the job at the fire station so no drinking allowed, but nice put down attempt.
Under Bush, corporate conservatives took charge of economic policy and pushed through top-end tax cuts, Wall Street trade policies, deregulation and privatization, crony corporate staffing and subsidies, open assault on labor unions, rollback of consumer and environmental protections. The results were stagnant wages, a corporate crime wave, Gilded Age inequality, the worst trade deficits in the annals of time, billions squandered in subsidies to Big Oil and Big Pharma—and an economy now dependent on the good will of Chinese and Japanese central bankers. But Bush was only ordering from the Reagans menu. He first served up the same noxious policy cocktail—and got the same results, even including the corporate plunder culminating in the savings and loan rip-off that cost taxpayers hundreds of billions of dollars.
You said I didn’t “see the big picture”, but I say not only did I see it, I lived it.
Still with the Clinto business, you guys gotta get some new material, we’re seven and a half years into the BushCo presidency.
Gotta run, training to do, but continue researching fringe web sites with dubious sources to attempt to disprove the obvious, this administration is scum just like Rayguns.
July 12th, 2008 at 7:03 pmBrain’s dog doesn’t hunt any more. I’ve been hearing that “the Democrats were just as crooked as…” since ‘02.
Will the republiscums ever realize that there is something wrong with this administration that exceeds any BJ Clinton had.
July 12th, 2008 at 7:11 pmSo I am thinking the logical conclusion is that the Reagan Administration was scum?
July 12th, 2008 at 7:12 pmBrain From Planet Arous and rocks911 – If you two had a child together the child would be Brainrocks, and Brainrocks would love you both and know you’re both right in your own ways, and Brainrocks would wish you’d stop fighting.
July 12th, 2008 at 7:15 pmbut who should handling the placental burial?
July 12th, 2008 at 7:23 pmhandling?.. sorry long day
July 12th, 2008 at 7:24 pmrocks911 Says:
Actually I’m on the job at the fire station so no drinking allowed, but nice put down attempt.
You said I didn’t “see the big picture”, but I say not only did I see it, I lived it.
Here’s the quote BY YOU that triggered this off.
Brain,
World Socialist Web Site? For real? Where on Earth did you dig up that pathetic web site. Christ you people will look under any rock to support your dillusions.
So you are a fireman. Very Noble profession. I work in IT for a Construction company, but I was directly affected by NAFTA when I worked for a major Computer firm.
However, fireman will never be effected by NAFTA or any other Free Trade agreement, much like Nurses or Policemen, or in fact Construction. The only way construction will be changed if cheap labor from other countries is imported and simultaneously labor unions are dismantled.
In effect, you are NOT talking from experience, so I will write it off as naiveté.
July 12th, 2008 at 7:38 pmYeah! We are finally NATIONALIZING the banks!
Any day now we will be living like the Cubans, Venezuelans, and North Koreans.
July 12th, 2008 at 8:02 pmThe brain shows its stupidity again. With the loss of businesses and jobs in any community all residents are affected. Police departments do not hire new officers and then will stop replacing those that retire or leave the force. The same goes for the fire department personell and it also affects the construction of new stations to keep pace with population growth. And when they close an existing station I’ll bet it is not the closest one to a gated community.
Oh, but what the hell, its probably time to outsource these necessary jobs, to no bid contractors of course, since they are so much more efficient than government could ever be.
With today’s technology and recently passed laws the police and fire departments will know all about us before we call for help and then they won’t have to bother with deadbeats that haven’t paid their taxes or people that can’t afford the user fees for their services.
July 12th, 2008 at 8:03 pmOf course, you do realize that the prosperity of the Clinton years set up Bush to take the fall with the crumbling of the economy (which wouldn’t have happened without Clinton).
/snark
Seriously, can we assume that the 8 billion this will cost the FDIC will come out of our taxes ?
July 12th, 2008 at 8:45 pmIt’s just another delusion of the febrile national whiners’ intellect!
July 12th, 2008 at 8:50 pmAny day now we will be living like the Cubans, Venezuelans, and North Koreans.
—
Can you just imagine the really impressive beef fusion dishes?…
July 12th, 2008 at 8:55 pmSo Saint Augustine, you speak in two directions at once. You say police departments will not hire, but then you demonstrate your paranoia as if you want less police. I was speaking of OUTSOURCING to other countries, dummy, not no bid contracts. You need a body in firefighting or law enforcement to fill a position, you can’t send these positions to Taiwan for instance to fight crime in the USA. When you move a position to another country, that is called outsourcing.
There is a problem with two conflicting thoughts occupying the same space in you at the same time, so I can understand your dilemma
Everything clear now?
July 12th, 2008 at 8:55 pmBanks & The Printing of Money…..
The Oldest & Biggest Ponzi Scheme on Earth!
But, When the Ponzi Scheme crashes this time…..
The Banksters are destroying the United States and the
July 12th, 2008 at 9:02 pmConstitution!
Economy in toilet
Banks failing
Homes foreclosing and being resold to highest bidder
Chicken in every pot
How Depressioning.
July 12th, 2008 at 11:32 pmThe second largest bank failure in the history of the US.
Yet another success story that Bush can add to his long list.
(and the Bush bootlickers chant “Clinton did it too!”)
July 13th, 2008 at 12:25 amThe plant brain does not know how to read or else doesn’t remember what it wrote: “However, fireman will never be effected by NAFTA or any other Free Trade agreement, much like Nurses or Policemen, or in fact Construction.”
When businesses are closing or laying off thousands of workers because of NAFTA there is a definate economic impact to government services. Construction of new facilities are not possible with out tax revenues to pay for it. Now carry the no money secenario forward and you’ll end up with the lack of police and firefighters because the government can’t afford to pay them. The exception would be for a one company town that completely depopulates when people move to where they hope to find work.
July 13th, 2008 at 12:52 amA house made of cards will cause a bank run (effect.)
But I ain’t bitter.
July 13th, 2008 at 6:05 amI’d say that the mortgage meltdown highlights Gramm’s culpability, rather than his ignorance. Slaphappy, heedless deregulation, giving a green light to sharp practice, has resulted in just what was predicted: a fresh disaster with its architects blaming the victims and engineering a bailout for themselves from the taxpayers.
July 13th, 2008 at 6:36 amBrain,
Yea thats it, my profession is my only perspective of the world, what a putz.
July 13th, 2008 at 8:31 pm