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Indymac Taken Over By Fdic

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WASHINGTON, July 11 (Reuters) - Mortgage lender IndyMac Bancorp Inc IMB.N was taken over by the Federal Deposit Insurance Corp on Friday, the second largest financial institution to close in U.S. history.

The FDIC said the estimated cost of the California-based bank's failure to its insurance fund is between $4 billion and $8 billion. The regulator said it will operate IndyMac to maximize the value of the firm for future sale.

IndyMac's primary regulator, the Office of Thrift Supervision, blamed a senior lawmaker's comments for causing a run on the deposits at the largest independent publicly traded U.S. mortgage lender.

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Hang on.... I've had a few, but looking at this: http://www.reuters.com/article/marketsNews...O00014120080711

"WASHINGTON, July 11 (Reuters) - Mortgage lender IndyMac Bancorp Inc (IMB.N: Quote, Profile, Research, Stock Buzz) was taken over by the Federal Deposit Insurance Corp on Friday, the second largest financial institution to close in U.S. history.

The FDIC said the estimated cost of the California-based bank's failure to its insurance fund is between $4 billion and $8 billion. The regulator said it will operate IndyMac to maximize the value of the firm for future sale".

$4-8 billion dollars is tiddlywinks next to Northern Rock, isn't it?

----

Adding in an edit: http://www.bloomberg.com/apps/news?pid=206...&refer=home

The lender racked up almost $900 million in losses as home prices tumbled and foreclosures climbed to a record. California ranked second among U.S. states, with one foreclosure filing for every 192 households in June, 2.6 times the national average.

Had IndyMac ``applied some common sense and changed their approach to underwriting as the housing market peaked, they might have lived to see the next cycle,'' Horey said.

IndyMac announced on July 7 that it was firing half its employees. The lender agreed to sell most of its retail mortgage branches to Prospect Mortgage, giving the Northbrook, Illinois based-company more than 60 branch offices with 750 employees. IndyMac also has a retail bank network with 33 branches and $18 billion in deposits, mostly insured by the FDIC.

Edited by W12

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This makes Northern Rock look like a children's garden party suffering a drop of rain, the bank was seized by regulators 30 minutes ago (I notice they waited until after the New York stock exchange closed for the day):

http://www.latimes.com/business/la-fi-indy...1,7375643.story

looks (on the face of it) as though the FDIC have taken control of the situation very well. Compare and contrast with the fumbling over NR. <_<

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No, it went to the moon.

Forgive my ignorance. Why? Is it a self fulfilling surge of contrarianism? I really don't get it. Maybe an over correction in the way of other financial institutions?

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Due to "Non Performing Loans" no doubt.

I'm trying to find a piece I read a few days ago saying they had a good quality mortgage book, where well funded and where in an excellent position to weather the storms.

Freddie and Fanny shares will shoot up Monday, I guess the reason they plummeted then started to recover was that there was a rumour of a bank collapse that turned out not to be them, I reckon they will gain more of the losses monday

Go long Monday on Fannie and Freddie.

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Forgive my ignorance. Why? Is it a self fulfilling surge of contrarianism? I really don't get it. Maybe an over correction in the way of other financial institutions?

I've got my own theories on FP's assertion, but in best 'countdown tradition' (you know the bit where they both show their seven letter words?) I'll let him go first. :D

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Due to "Non Performing Loans" no doubt.

I'm trying to find a piece I read a few days ago saying they had a good quality mortgage book, where well funded and where in an excellent position to weather the storms.

Freddie and Fanny shares will shoot up Monday, I guess the reason they plummeted then started to recover was that there was a rumour of a bank collapse that turned out not to be them, I reckon they will gain more of the losses monday

Go long Monday on Fannie and Freddie.

With respect and IMHO it's poor form to offer that sort of advice on this forum, bit like guys saying "don't buy a 100K house" on here in 2004.... :rolleyes:

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Guest anorthosite
No, it went to the moon.

However it only stayed there a few hours before returning home to biological quarantine and massive funding cuts which ultimately destroyed it ;)

It started off like this:

apollo_11_launch.jpg

and all we have left of it is this:

98-16042_640.jpg

Much of the rest is either drifting aimlessly through space never to be seen again, smashed into a million pieces on impact with the moon or burnt up in earth's atmosphere.

Sorry FP, its Friday night and I'm feeling silly ;)

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In comparison to the amount of money the UK Government has spent dealing with NR, this US bank is quite small, or should I say the costs to save it from total collapse, are quite small.

Again, it shows the difference between a country (US) not embarrassed about being capitalist and prepared to fix these problems quickly and a country (UK, or at least the Government) who take an entirely different approach to capitalism and are somewhat embarrassed by the implications.

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In comparison to the amount of money the UK Government has spent dealing with NR, this US bank is quite small, or should I say the costs to save it from total collapse, are quite small.

Again, it shows the difference between a country (US) not embarrassed about being capitalist and prepared to fix these problems quickly and a country (UK, or at least the Government) who take an entirely different approach to capitalism and are somewhat embarrassed by the implications.

:lol:

Capitalism? :o

Where? :lol:

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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