IndyMac Bancorp of Pasadena, a lender that appears to be fighting for its very survival, said today Chief Financial Officer A. Scott Keys resigned after being on medical leave since April 24.
Interestingly, the release said Keys gets four months of salary worth about $220,000 and doesn’t have to pay back a loan of about $50,000 in return for signing “a confidentiality and non-solicitation agreement.” In other words, he will keep the company’s secrets.
That’s pretty standard stuff when executives leave — companies want to stop them from going to a competitor or setting up a rival shop. However, the next sentence in the release says his departure “was not related to any concerns, issues or disagreements regarding the Company’s accounting policies or practices or financial disclosures.”
Hmm. IndyMac felt it necessary to point out the CFO, who came to the company in 2002 from a job at accounting firm Ernst & Young LLP, is not leaving over an accounting dispute. So why is he leaving? The filing didn’t say.
On Monday, IndyMac issued a release saying its financial situation has “deteriorated” since the first quarter and it is working with regulators to improve its “safety and soundness.” It will reveal more later.
IndyMac responded to letters Sen. Charles Schumer (D-New York) sent to regulators, saying they are not prepared for a potential insolvency. The company said his letters and resulting press coverage spooked customers into withdrawing last Friday and Saturday roughly $100 million, or about 0.5% of total deposits.
It said “branch traffic” was elevated Monday, but not as high as Saturday.
Related news:
- Sen. Schumer raises concerns over IndyMac’s solvency
- IndyMac expects to lose money for all of 2008
- Downey, WaMu, Indymac plummet in thrift industry rankings
- IndyMac suspends dividend, posts $509 million loss
- Indymac Bancorp cuts 2,403 jobs
- U.S. Senate to air critique of O.C. reverse mortgage company
- IndyMac sees more losses, focuses on liquidity
- How bad are things at WaMu?
- SEC Chairman Cox under fire, report says
- Subprime and punishment
It is never a good sign, is it?
PROSPECT MORTGAGE ACQUIRES INDYMAC BRANCHES
I am thrilled to announce that Prospect Mortgage will acquire the majority of the retail branches of IndyMac Bank Home Lending. This transaction includes approximately 750 employees and over 60 branch locations. We are excited to have them onboard! The IndyMac branches will adopt the Prospect brand. This is a tremendous development for our organization. This transaction is proof that we are on our way to becoming the nation’s largest independent retail mortgage company.
Prospect Mortgage has been focused on growth for the right reasons, not just for the sake of growth. Our mission is to be the premier residential mortgage company in the United States for professional Loan Officers who want to excel and are dedicated to providing the best advice and service to their clients. We want Prospect to be the best place for successful Loan Officers and Sales Managers. In fact, we have numerous examples where Loan Officers have gone to competitors, then returned to Prospect.
We continue to invest in our business to provide a competitive advantage to our Loan Officers. The IndyMac transaction will enable us to increase our investment and success in marketing, technology, and customer service levels. The IndyMac platform will also help us offer REO opportunities to our Loan Officers and Realtors. I am excited to welcome John Johnston and Ron Bergum, co-leaders of IndyMac Retail, to the Prospect family. I worked with John and Ron for several years; I know their entrepreneurial passion and sales leadership will be a great fit with our culture.
These positive developments reinforce our operating strategy. We only succeed if we can help our Loan Officers close more loans. This growth, and the capabilities it provides, also benefits our referral sources and Partners. For example, IndyMac’s commitment to Home Buyer’s Marketing will benefit the whole team. In conjunction with this transaction, and the increased volume it represents, we have significantly increased the amount of our warehouse line capacity.
We will continue to focus on growth, technology and service upgrades—all in the name of our mission and values and indicative of our long-term commitment to the mortgage industry. We continue to have great opportunities ahead of us. With your continued support, we will act and win as a team.
Sincerely,
Mark Filler
CEO