IndyMac Bancorp Latest Victim of Mortgage Crisis

by Florida's #1 Mortgage Planner on July 11, 2008

IndyMac Bank Gets Overthrown by FDIC Today marked the takeover of IndyMac by the FDIC as federal regulators shut the doors on this Pasadena, CA based savings bank, making it the largest casualty of the subprime mortgage crisis.  It also happens to be one of the largest bank failures in US history, actually it took second place.

As the government moves to take over the entire nation’s lending institutions, IndyMac will reopen Monday as IndyMac Federal Bank, controlled by the FDIC.  The immediate cause for its demise, interestingly enough, was put in place by the government itself.  (weren’t they supposed to be helping out?)

The rapid prelude to its takeover was started after a letter dated June 26 to the OTS and the FDIC from New York Senator Charles Schumer was made public.  Way to go Charles!!!  The letter expressed concerns about the soundness of IndyMac and when the letter went public, a run on the bank occurred (go figure).

Did the government want IndyMac to fail?  Decide for yourself, but it is rather interesting how this all played out.  Of course, Schumer couldn’t be reached for comment and the OTS downplayed their role saying IndyMac’s failure was due to a liquidity crisis and they are troubled by any interference in the regulatory process.

There is little doubt as to the fact Senator Charles Schumer acted wrongfully and irresponsibly.  The only real question is did he get what he wanted.

{ 1 comment… read it below or add one }

Nancy October 7, 2008 at 2:32 pm

HELLO?! Although I know my way around, I am no economic expert but I could see there was something wrong (the water was receding before the tsunami, I guess.). When I would bring this up to people they would tell me to enjoy the ride, how prices in Florida were just too low for too long. I thought maybe I was worrying for nothing but I guess that nagging doubt was right after all. Better to listen to your gut then a expert who’s first solution is to buy more of the toxic debt nobody wants.

People were buying way over their head. Instead of a starter home, the young couple wanted the big house with a pool. It was hard NOT to sell a house. They got questionable loans & didn’t seem to care about the penalties even after explained to them. But how can the same exact model house be going up $10,000 a month with no sign of hitting the brakes? It was a literal run away train. The builders were giddy buying up lots & completely filling in blocks of vacant land within weeks (I still have many vacant, never occupied homes around my home for 15 years with tall grass). Where were the jobs? All the out of town agents have since moved on to fertile ground. They come, conquer & leave their footprints with no consequences. What about the people who actually live here? With all the experts we hire, nobody can COUNT the number of building permits & figure in how much more or less roads, services, drainage, schools, etc. are going to be needed for this growth. These ivy league school grads are full of stale air instead of any new ideas.

Our next President should have a YEARLY review with objectives & consequences, like we all have. RESUMES do matter but only the accomplishes count. Everyone can ask, “What have you done for me lately?” It’s about time the People of this great country get to say, “YOUR FIRED!” Let’s push our agenda…not theirs.

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