Report says FBI probing possible loan fraud at IndyMac
July 16th, 2008, 3:35 pm · 5 Comments · posted by Mathew Padilla, Reporter
The Associated Press reports today that the FBI is investigating failed bank IndyMac Bancorp of Pasadena for possible fraud. The AP cited an anonymous law enforcement official who said the Bureau is looking at the company rather than the individuals who ran it.
It’s unclear if the investigation is new, springing out of the government’s seizure of the bank this week, or dates back months. The FBI has long said it is conducting a sweeping investigation — the latest count is 21 companies tied to subprime. Last year failed subprime giant New Century Financial of Irvine said it was under investigation.
To read the full story CLICK HERE.
And to hear what consumers had to say while waiting in line at an IndyMac branch listen to an NPR report HERE. One thing I have noticed from press reports is that people waiting in line tend to have more money in IndyMac than what is covered by FDIC insurance, usually $100,000 per person per bank. I hate to blame consumers. But IndyMac has been in the news for a year as having mounting woes and has reported whopping losses earlier this year. So shouldn’t consumers pay more attention to companies that hold so much of their money? Just a thought. Bring on the hate mail.
Related news:
- Should U.S.-backed mortgage giants be bailed out?
- Sen. Schumer raises concerns over IndyMac’s solvency
- Look who’s making subprime loans now
- Former Countrywide No. 2 sees opportunities in troubled mortgages
- Tustin company hopes to lead lenders down the right path, this time
July 16th, 2008 at 3:43 pm
But the average income in OC is only $70k – does this mean that LA county jobs pay that much better??? It is crazy to think people can save that much money – just crazy!!!
July 17th, 2008 at 10:35 am
I reserve the hatemail for Commissar Galvonovich, who, come to think of it, has been noticeably absent from the blog as of late. What’s the good Commissar up to these days?
Being the personal responsibility libertarian that I am, your comment about depositors being clueless is absolutely correct. The bank run at IndyMac was big news, so I have to assume that some people were on vacation and didn’t hear about it. What a costly mistake!!! Is it really that difficult to split your money into separate accounts at different FDIC institutions? Sure there’s a little bit of hassle there, but if you’re going to keep your money in all cash, this is an essential step to take.
I finished Chapter 1 of “Chain” and so far I’m very impressed.
July 17th, 2008 at 12:05 pm
The FBI is doing no more than “playing pin the tail on the donkey”.
What a waste of time. They need to win one, so what better way than to investigagte a company that no longer in business, where there is no one to defend themselves against.
July 17th, 2008 at 1:49 pm
How’s this for “not paying attention”? One person complained that when she took her money out of her CD at failed Indymac, next-to-fail WAMU wouldn’t accept the check. UMMMM, HELLO????? Do you even WATCH/READ/LISTEN TO the news? WAMU? It made me feel like hitting her over her stupid head and taking her money because she obviously can’t handle it.
Should they pay more attention? Yes. And to punish them for their stupidity I say we divide up their checking account proceeds among the people who actually watch what’s going on in the world.
July 30th, 2008 at 9:34 pm
I need to know where to report a loan oficer who made a lot of frauds.
By lying about incometax and false social security numbers.