IndyMac: IndyMac History and Collapse. The Saga of the Second Largest Bank Failure in History, here

[drhousingbubble]

IndyMac was taken over this weekend by the FDIC. Here are some stunning facts:

Assets: $32 billion
Deposits: $19 billion

Peak market cap: $5 billion
Current market cap: $10 million

For those of you who don't know, Countrywide Financial produced this spawn in the 1980s to off load get this, loans too large for Fannie Mae and Freddie Mac. As the market boomed, they eventually spun off this unit into IndyMac in 1997 right in time for the epic housing boom. They felt they were okay with Alt-A and Pay Option ARM loans and I dug up a video of CEO Michael Perry talking on CNBC in September of 2006 of how great things were. It is a must watch.

Either way, the doors open and the war chest of the FDIC just shrank big time. We'll be having more failures like this throughout the year. And then we have some of Kudlow's minions trying to blame this on a letter dished out by Senator Charles Schumer on June 26, 2008 urging oversight on IndyMac. At the time IndyMac was trading at .80 cents a share. Now, they are trading at .10 cents off from their $50 peak price.

Maybe the letter was part of the mental recession eh?

http://www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/"> IndyMac history from Countrywide spawn to uber toxic mortgage provider and collapse

[NMDemDist2]

1. we're gonna make a liberal outa you yet DrHB

:rofl:

[Eurobabe]

2. Jeebus.

And this article on the plane yesterday, noticed, flying from UK to EU

US mortgage giants' crisis sparks fear for British banks

Emergency talks were being held this weekend to rescue America’s two biggest mortgage companies amid fears their collapse could hit UK markets.

The US government is facing a race against time to save the Wall Street-listed Federal National Mortgage Association, nicknamed Fannie Mae, and the Federal Home Mortgage Corporation, known as Freddie Mac, before financial markets open tomorrow.

On Friday, regulators stepped in with a £4billion rescue of the Californian-based IndyMac Bancorp – the fifth US bank to collapse this year due to the mortgage crisis and the third-largest banking failure in the country’s history. http://www.dailymail.co.uk/news/article-1034614/US-mortgage-giants-crisis-sparks-fear-British-banks.html