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. ...

[SE Mom]

Are you SERIOUS? Do you think they’ll let Freddie and Fannie go down?

I’d be surprised.

[gathersnomoss]

Agreed, from this 54 yo.

[rabscuttle385]

"Although this institution was already in distress, I am troubled by any interference in the regulatory process," said OTS Director John Reich.

Everyone needs a little Federal on Federal now and then.

[politicket]

What can folks do to protect their assets?

I only play an investment counselor on TV. Seriously, my family went to cash last December. We're losing money due to the devaluation of the US Dollar, but not like we would have lost if we stayed in the market.

The other thing that I would recommend is to prepare your household for an economic collapse. I'm not saying that it will definitely happen, but you don't want to be making plans the day it does. We're raising chickens and growing quite a bit of our own produce. Keeping the ammo stocked probably isn't a bad idea either.

P.S.: This has nothing to do with the upcoming election - even though there are many on FR that will tell you that. It has to do with many bad financial risks and decisions that are rapidly collapsing.

[litehaus]

"failed bank alert"

THANK YOU SMUCKY SHOOMER of NEW YORK!!!

[gathersnomoss]

Yes, the Fed should let the market fall. But wait, there is hope, for a Change. Do I see The Magic Negro?

[proudofthesouth]

In early or mid June someone posted here on FR that due to some kind of stock market or economical theory that the BIG, BIG crash will happen early next week. That this coming crash will make the Depression look like a walk in the park. I wonder if this is the beginning of that happening.

[politicket]

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

I'm not predicting the end of the world. But my understanding of God's Word and the current environment of the United States shows that God has lifted His hand of protection from our country.

[Fury]

Pinging you on this thread for your comments, which are always appreciated.

[Southack]

You can thank Senator Chuck Schumer’s public letter for the $1.3 Billion run on IndyMac’s deposits this week.

[Orange1998]

They always close them on Friday. When a bank is having serious problems they know every Friday could be the day.

[Smogger]

So the forced them to loan the money to people who couldn’t pay it back.

LOL! Forced them? The banks were falling all overthemselves to lend money to people who couldn't afford it. They thought the worst case scenario would be they could soak the their customers for a couple of years worth of interest payments then foreclose and sell the house to some other sucker.

[politicket]

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

I have spent the last 8 years of my life heavily involved in the investment consulting industry. My involvement had to do with the certification and training of consultants dealing with high net-worth clients (many VP's, etc. from major financial houses).

What is your expertise?

[silentreignofheroes]

Heard on a local talk station here that as many as 6000 banks are going under shortly,we’ll see.

[groanup]

I wonder if this is the beginning of that happening.

No.

[HAL9000]

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

It's probably the best way to do it. It gives them a couple of days over the weekend to get situated and re-open on Monday.

[Swanks]

Lehman...

Great pick by NJ Governor / Bozo: Corzine. The recent [2 mo. ago] teacher's pension fund investment in Lehman Brothers has now lost $120,000,000 as of today. That is a 66% loss in two months. 16% today alone.

Corzo's handpicked Wall Street manager found this gem. But...it is the NJNEA so screw 'em

[Uri’el-2012]

I'm not predicting the end of the world. But my understanding of God's Word and the current environment of the United States shows that God has lifted His hand of protection from our country.

Amen !

Look up; the King is coming !

shalom b'SHEM Yah'shua HaMashiach Adonai

[Lonely Are The Brave]

Ah...diversity and political correctness...

Let’s take care of ‘em...

The chicks have come home to roost and the shit smells...

[skeeter]

I guess the sky really IS falling.