IndyMac failure to cost more than expected
August 27th, 2008, 12:00 pm · 6 Comments · posted by Mathew Padilla, Reporter
The thrift unit of IndyMac Bancorp in Pasadena that was seized in July by regulators is expected to cost a government-run insurance fund $8.9 billion, up from an original estimate of $4 billion to $8 billion, Reuters reported yesterday.
The Federal Deposit Insurance Corp. also said it will soon start widely marketing IndyMac’s assets.
“We hope to market it certainly in the third quarter,” FDIC Chairman Sheila Bair told a news conference. “I think we’re going to be marketing it both as a whole bank as well as in pieces.”
Real the full story HERE.
And in related IndyMac news…
- Troubled IndyMac mortgage borrowers get help from FDIC
- IndyMac “unattractive” to buyers
- IndyMac’s former owner files bankruptcy
- Federal Grand Jury investigating New Century, Countrywide and IndyMac
- IndyMac CFO leaves, no accounting disputes here, company says
- Regulators shut down IndyMac
August 27th, 2008 at 12:56 pm
What a stupid, foolish situation we’re in!
The FDIC now says they may need more money from the US Treasury to pay additional claims in the future as more banks fail. Excuse me, isn’t this a nice way of saying the banks have been paying low insurance premiums for too long, and now there ain’t enough money in the pool, so the Tax Payer will pick up the balance.
Even the CEOs of the banks don’t know what is on their own balance sheets. John Thain of Merrill Lynch, has called several bottoms, yet every few weeks, the news is worse.
What kind of a circus act are we running here?
August 27th, 2008 at 1:25 pm
…..”if this aint a mess, it will do until the mess gets here”.
quote from movie no country for old men.
August 27th, 2008 at 6:46 pm
Everyone is to blame. You can’t basically completely deregulate the mortgage market and expect good things. Whenever we deregulate any market, this happens. Of course, people accepting loans they can’t afford are to blame as well.
August 28th, 2008 at 7:40 am
beyond the margin -
You are so right. To me, this bs just encourages bad choices. Total bs. They might as well have robbed a bank.
August 28th, 2008 at 9:01 am
As I read this discussion, I’m being distracted by the banner ad on the right side of the page:
“New Housing Bill Passed! $133,000 Mortgage for Under $529/Month!”