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IndyMac Bank seized by federal regulators
Kathy M. Kristof and Andrea Chang
LA Times
Saturday, July 12, 2008
The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.
Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: “Please, please, I want to take out a portion.” All she could do was read a two-page notice taped to the door.
The bank’s 33 branches will be closed over the weekend, but the Federal Deposit Insurance Corp. will reopen the bank on Monday as IndyMac Federal Bank, said the Office of Thrift Supervision in Washington. Customers will not be able to bank by phone or Internet over the weekend, regulators said, but can continue to use ATMs, debit cards and checks. Normal branch hours, online banking and phone banking services are to resume Monday.
(Article continues below)
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. The agency’s insurance fund has assets of about $52 billion.
IndyMac’s failure had been widely expected in recent days. As the bank was shuttering offices and laying off employees to cope with huge losses from defaulted mortgages made at the height of the housing boom, 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.
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10 Responses to “IndyMac Bank seized by federal regulators”
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July 12th, 2008 at 9:05 am
way to go capitlism, no problems eh.
July 12th, 2008 at 1:18 pm
And so it begins…
July 12th, 2008 at 1:46 pm
Alex and others were right again. I wonder what were in for this coming week. Gold, Food, DVD Burners, Guns
July 12th, 2008 at 6:05 pm
Damn the system. This is basically a micro version of what could happen. And the people would lose everything. I can’t believe people have allowed reality to be manipulated into this… humanity is shamefully stupid and woosy.
July 12th, 2008 at 10:08 pm
YOU GUYZ ARE DOING GREAT FUKN WORK TAKEIN IT STRAIGHT 2 THOSE MUTHAFUCKERS WHO KNOW THE TRUTH…YOU WILL EXPOSE SHAME AND CRUMBLE THE DESIGNERS OF THIS WAR ON MANKIND..LIKE YOU WE EXPOSE EDUCATE AND MOTIVATE THROUGH THE POWER OF MUSIC AND LYRICAL CONTENT…FROM STATE CONTROL 2 BIG BROTHER TO
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July 13th, 2008 at 9:57 am
Wow, I live in Pasadena. The signs of the new “Great Depression” are all around us!! Stock up on basic supplies while you can! Who knows how much longer this bullshit system will keep functioning!!
July 13th, 2008 at 11:46 am
me: this is actually an indication of successful capitalism. The fraudulent and failed business went bankrupt. If it weren’t for the FDIC bailing out all the foolish people that invested their money with the bank would be paying the bills for their bad decision. Instead the entire country pays the bills. So this isn’t actually free market capitalism.
July 13th, 2008 at 12:11 pm
Thank you Chuck Schumer-D for opening your big mouth and causing panic for no reason. He knows that 96% of the depositers at Indymac had UNDER $100,000 and were fully protected. He also knows that federal regulators had a plan in place to not only save the bank, but make it even more viable. He is the “chicken little” of 2008, I hope he has criminal charges brought against him, what he did by writting that letter to the editor and saying, “Gee, I hope Indymac doesn’t fail and all those people in CA wont lose all their money” was criminal.
July 13th, 2008 at 12:16 pm
1,087$ pymts, 30 yr loan-
do math- approx
1,000 per month= 12,000 per yr
(extra 87.00 per month(12 monthes)1200-156= 1,046(30yrs)=31,380
12,000 per yr(30yr)= 360,000$
360,000+ 31,380= $391,380
The first 7 years is mostly all interest.
you pay 391,380$ plus for a 150,000 home.
VAMPIRES IS A NICE NAME FOR THESE CRIMINALS WHO ARE DESTROYING OUR COUNTRY.
July 14th, 2008 at 4:45 am
Do you realize we are 53 trillion dollars in debt? What the fuck did they spend it on? This country is falling apart. Our roads and bridges are crumbling, the water is poisoned with pharmaceuticals, millions without healthcare, millions jobless, no help for victims of natural disasters, millions losing their homes etc etc etc…..and we are 53 TRILLION DOLLARS IN DEBT!!!! First they spent all our money, then they borrowed all they could from anyone who would lend it. Then they sold all our shit (buildings, land, roads). Now they are going to destroy the whole country to squeeze out whatever money we have left in our savings and pensions. Just like the fucking mafia would do.
“After you borrow all you can on the place’s credit, you burn it down” -Tony Soprano