former_optimist Posted July 11, 2008 Share Posted July 11, 2008 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. Quote Link to comment Share on other sites More sharing options...
Caribbean Beauty Posted July 11, 2008 Share Posted July 11, 2008 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 Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted July 11, 2008 Share Posted July 11, 2008 Watch the stock market go like Apollo 11 on Monday. Quote Link to comment Share on other sites More sharing options...
Caribbean Beauty Posted July 11, 2008 Share Posted July 11, 2008 Watch the stock market go like Apollo 11 on Monday. Was Apollo 11 the rocket which crashed then? I shall google it now... Quote Link to comment Share on other sites More sharing options...
JohnnyB Posted July 11, 2008 Share Posted July 11, 2008 Wow, this is big. No, massive!!! Can freddie and fannie last long like this? Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted July 11, 2008 Share Posted July 11, 2008 No, it went to the moon. Quote Link to comment Share on other sites More sharing options...
_w_ Posted July 11, 2008 Share Posted July 11, 2008 Watch the stock market go like Apollo 11 on Monday. As in up? Quote Link to comment Share on other sites More sharing options...
Concrete Jungle Posted July 11, 2008 Share Posted July 11, 2008 Holy Moly this is rather big news!! Quote Link to comment Share on other sites More sharing options...
_w_ Posted July 11, 2008 Share Posted July 11, 2008 No, it went to the moon. As in relief? Buy on the news? Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted July 11, 2008 Share Posted July 11, 2008 No, it went to the moon. And then it had a big splash-down! Quote Link to comment Share on other sites More sharing options...
W12 Posted July 11, 2008 Share Posted July 11, 2008 (edited) 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 July 11, 2008 by W12 Quote Link to comment Share on other sites More sharing options...
Joey Buttafueco Jr Posted July 11, 2008 Share Posted July 11, 2008 This is like a bolt from the blue. The market had no idea that this might happen http://online.wsj.com/article/SB1215552279...ial_real_estate Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 11, 2008 Share Posted July 11, 2008 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. Quote Link to comment Share on other sites More sharing options...
Quagmire Posted July 11, 2008 Share Posted July 11, 2008 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? Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 11, 2008 Share Posted July 11, 2008 No, it went to the moon. Did it really? Quote Link to comment Share on other sites More sharing options...
FortuneFTB Posted July 11, 2008 Share Posted July 11, 2008 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. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 11, 2008 Share Posted July 11, 2008 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. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 11, 2008 Share Posted July 11, 2008 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.... Quote Link to comment Share on other sites More sharing options...
Injin Posted July 11, 2008 Share Posted July 11, 2008 Time toi spend those dollars on absolutely anything before they spontaneously combust.. Quote Link to comment Share on other sites More sharing options...
Guest anorthosite Posted July 11, 2008 Share Posted July 11, 2008 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: and all we have left of it is this: 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 Quote Link to comment Share on other sites More sharing options...
hostman Posted July 11, 2008 Share Posted July 11, 2008 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. Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted July 11, 2008 Share Posted July 11, 2008 It's hardly Bank of America is it? Although that will probably go bust next year! Quote Link to comment Share on other sites More sharing options...
Injin Posted July 11, 2008 Share Posted July 11, 2008 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. Capitalism? Where? Quote Link to comment Share on other sites More sharing options...
narco Posted July 11, 2008 Share Posted July 11, 2008 Finally is this where DOW goes to 15000 and gold $775? Quote Link to comment Share on other sites More sharing options...
hostman Posted July 11, 2008 Share Posted July 11, 2008 Capitalism? Where? Here, apparently. We sell things. Gordon's made a tidy sum selling all our souls. Quote Link to comment Share on other sites More sharing options...
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