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IndyMac Bancorp Inc. became the second-biggest federally insured financial company to be seized by U.S. regulators after a run by depositors left the California mortgage lender short on cash.
The seizure was announced after markets stopped trading for the weekend - which is, of course, a favorite time to dump bad financial news.
IndyMac was quite badly exposed to the mortgage crisis, but it's hardly the only institution with that type of exposure. Is this a sign that things are about to get worse in the banking sector, and that brief hopes of a rebound were premature?
I am glad I have very little money at all in any bank. it just goes to show you that putting your money in a bank is just the choice of the foolish. even if they say it is FDIC insured, that does not mean you are going to get all your money back.
Losertarian, please explain your statement, it's not clear to me.
The FDIC has a little less than 60 billion to cover the deposits of this entire nation (some two trillion). It's going to cost the FDIC anywhere between 4 and 8 billion to bail out IndyMac. A few more of these puppies go belly up, and the government is going to have to print up the money to bail out the FDIC. If this happens, you can kiss the dollar good bye. Buy stuff to protect your wealth now.
The seizure was announced after markets stopped trading for the weekend - which is, of course, a favorite time to dump bad financial news.
IndyMac was quite badly exposed to the mortgage crisis, but it's hardly the only institution with that type of exposure. Is this a sign that things are about to get worse in the banking sector, and that brief hopes of a rebound were premature?
Who is most to blame for all of this?
The Federal Reserve.
Too much tinkering with interest rates in what is supposedly a "free market" and too much printing of money.
They have completely screwed up the financial system and the dollar.
Every person who participated is at fault. Originators, processors, underwriters, managers, investors (including the 401k invested in mortgages) and borrowers... Heck, the public education system is at fault for producing such morons who can't handle money.
Politicians are at fault too... not for lack of regulation, but for feeding the frenzy with subsidizing loans beyond Freddie, Fannie and FHA! (State and city governments had all these idiotic bond loans that contributed to the high demand that created the bubble.)
This thing was so big and so slow moving, only a flipping idiot who was buying couldn't see it coming way back in '04. Basic-- BASIC-- understanding of supply/demand would tell any half-wit to stay out of the market... but it's easier to ask forgiveness than permission... so now those of us who made smart decisions are burdened with people who are getting a house on my dime. ******* socialists. What an outrage... What an outrage that I'm being penalized and morons are being rewarded.
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