U.S. Shuts Big Bank As Crisis Intensifies

Wall Street Journal ^ | July 11, 2008 | Damian Paletta and David Enrich

[politicket]

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators in one of the largest bank failures in U.S. history.

The Pasadena, Calif., thrift was one of the largest savings and loans in the country with about $32 billion in assets. It now joins an infamous list of collapsed banks, topped by Continental Illinois National Bank and Trust Co., which failed in 1984 with $40 billion of assets.

IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets. ...

[politicket]

The chips are beginning to fall...

[the invisib1e hand]

Did this story get released after the market closed? That's not a good sign.

[politicket]

The story was released at 6:59 p.m. EST. You’re right, IndyMac is just a precursor of what’s coming.

[proudofthesouth]

How bad do you think it will get?

[Signalman]

The libs told the banks that if you they didn’t loan money to sub-prime borrowers, the majority of whom were minorities, then they were “racist”. So the forced them to loan the money to people who couldn’t pay it back. And that’s where we are...

Back to you, Chet.

[groanup]

From the article:

In a written statement, the Office of Thrift Supervision, which regulated IndyMac, said "the immediate cause" of the failure was statements made by Sen. Charles Schumer, a New York Democrat. Mr. Schumer in late June publicly raised concerns about the bank's solvency.

Can't wait to see Shumie wiggle on this one.

[proudofthesouth]

Political correctness is rapidly killing this country.

I'm 51 years old. I NEVER thought I would live to see its destruction but I probably will. God help the children of this country.

[politicket]

How bad do you think it will get?

Fannie Mae and Freddie Mac will probably go under. The Fed's just allowed them access to the discount window today, but that is like putting out a forest fire with a squirt gun.

I also wouldn't be surprised to see Lehman, Citibank, and UBS either go under or suffer irreparable harm. UBS is located in Sweden.

The bank failures are going to seem small potatoes once the derivatives market starts unwinding.

[Brian S. Fitzgerald]

Information for IndyMac Bank, F.S.B., Pasadena, CA [failed bank alert]

[Fury]

The bank failures are going to seem small potatoes once the derivatives market starts unwinding.

What can folks do to protect their assets?

[RightWhale]

Friday, too. Nothing happens on the weekend, but this story might make WSJ radio Saturday show.

[the invisib1e hand]

can you develop your logic for the end of world a little bit better?

[proudofthesouth]

Last Fall I told my elderly Mom to get out of the market and sell everything she had. She didn’t listen to me and she may very well loose everything she has invested.

[bvw]

Always travel with towel.

[the invisib1e hand]

The bank failures are going to seem small potatoes once the derivatives market starts unwinding.

This is "fire in a theater" talk. What rock have you been hiding under for the last year?

[Dems_R_Losers]

Thanks Democrats! Let's see if you can get that approval rating even LOWER now that you are actively running banks out of business and putting thousands out of work!

BTW, the director of the OTS is John Reich, who once served as Chief of Staff to Sen. Connie Mack. He is no wallflower and he's taking it to Schumer on this one. Schumer also had a lot to do with the collapse of Countrywide.

[SE Mom]

bttt

[RightWhale]

What can folks do to protect their assets?

Commodities. Own the oil well. If oil wells are nationalized, you will own the shirt on your back.

[raybbr]

I hope you don’t work for this bank....

[gathersnomoss]

And you won’t hear Bush or any Republican state this fact, right David?