The Fall of Indymac Bank Part 2

Yesterday Indymac Bank (IMB) ceased accepting new loan files in both Retail and Wholesale.

They cited the usual rhetoric of the difficult financial marketplace and turbulent times.

They also cited, and this is the really important part. Lack of Liquidity.

"Yet in this environment, where either there are no bids for most of IMB’s mortgage loans and securities or the bid/ask spreads are abnormally wide, “fire-selling” assets would actually deplete capital further. "

Every large bank needs to be able "securitize" and "monetize" their mortgage assets. Indymac ran out of that ability. Distributed by Tubemogul.

Category:

News & Politics

Tags:

• home
• indymac
• loans
• mortgage

[ovalschwartz]

A few hours ago, the FDIC took possession of IndyMac.

Wickedphantom, your fired.

Mr. Mueller knows what he is talking about.

[mike912mueller]

Ovalschwartz - I'm crying out of one eye and tears of laughter flowing out the other.

"Wickedphantom, your fired."

Hey, what's a black oval?

[mike912mueller]

Wickedphant0m - Are you serious? What koolaid are you drinking? "Yesterday Indymac Bank (IMB) ceased accepting new loan files in both Retail and Wholesale." The week before they ceased all commercial business.

I deal with many of other closed lenders on a daily basis. They are just shells of a company.

Right now it's doubtful they can even close the business they have locked.

It sounds to me like either you or your SO work as a teller in a branch?

[sudeman48]

Doe's anybody know if the 950 billion bail out

will help the Indymac depositors get the money

the bank screwed them out of??? Please respond

sudeman

[motn12]

nice "hair" buddy.

[chairde]

Today is August 4th at 4:00pm. I just received a 'Conservatorship Notification Letter' from Indymac bank. Basic information is that it is now 'IndyMac Federal Bank,FSB and that they expect me to continue my payments on the mortgage. So the only difference for me is that I make a minor change on my checks. Hey works for me.

[evcrawfish]

you are wrong / this guy is way wrong / the fed is a private bank,,,not part of the federal government, increasing liquidity means printing more monopoly money, which further drives down the value (purchasing power) of the dollar...what we need is to let the banks fail, take back the big ass embezzlement salaries of the upper management... and let this thing work it self out....but all the things that need to happen will never be allowed to happen,,they want NAU...wake up everybody

[MishuTaste]

We need more Americans to have steady jobs and GOOD CREDIT ratings. We need less greedy CEOs & corporate board members who want to send jobs overseas. How can you justify paying someone $20,000,000 a year to run a company and then turn around and tell your employees the company is downsizing for lack of funds?!

[MYFreeSpeach4U]

Well just keep printing fed money,Backed by nothing, this is a lame answer, If I may say so, The right thing is at hand, let the gov't print the money as intrest free, Cut the fed out and see the real deal happen, no more intrest to the private bankers, who are controling us, See Exe order 1963, 11110, Kennedy tried to, Lincoln did, but was stoped after the war, and Pres. wilson made us a puppet to the new formed FED 1913,Lets do some History here

[MYFreeSpeach4U]

Why is part 1 being shut out?????

[ficote72]

remember FED is fighting for "price stability" incredible in a free market economy but FED is a socialist central banking system. If they are asked to deposit back they have to sell cheap, and even when it is normal inder free market rules, it affect the FED war on keeping prices untouchable.

[mrjaywilliams]

Although they may have run out of liquidity due to being unable to sell off there mortgage backed securities, would they not have been able to continue doing some sort business through fractional reserve banking, or would their usual deposit to the Fed be what they gained from their securities?