Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, JULY 5, 2009

« Back to the grid | Next story »

Feds Seize Failed IndyMac Bank

(Newser Summary) – As mortgage lenders Freddie Mac and Fannie Mae crowded the headlines today, Washington snatched up IndyMac Bank in the second-largest US bank failure in history, the Wall Street Journal reports. The Pasadena, Calif. savings and loan, which owns about $32 billion in assets, saw stocks fall from $45 last year to 28 cents this week as mortgage defaults piled up. It will reopen Monday under federal supervision.

One federal regulator blamed New York Senator Chuck Schumer for causing the downfall by questioning the bank's solvency last month. "Although this institution was already in distress, I am troubled by any interference in the regulatory process," the regulator said. The company tried to stave off ruin this week by pledging to ax more than half its workforce and shutter lending operations.
Source: Wall Street Journal

elsewhere: IndyMac fielded rumors last month Los Angeles Times • What Schumer said BusinessWeek

More about:  financial crisis • subprime crisis • bank regulation • FDIC • takeover • lending practices • Federal Deposit Insurance Corp. • IndyMac

A bicyclist waits for the light in front of an IndyMac...
A bicyclist waits for the light in front of an IndyMac Bank location.   (AP Photo)
FDIC Chairwoman Sheila Bair.
FDIC Chairwoman Sheila Bair.   (AP Photo)
Federal Reserve Chairman Ben Bernanke.
Federal Reserve Chairman Ben Bernanke.   (AP Photo)
An IndyMac Bank branch office in Burbank, Calif.
An IndyMac Bank branch office in Burbank, Calif.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy

 

Related Newser Stories

156 Stories

Wreck of IndyMac Sold
for $13.9B

Soros, Dell among the players in FDIC's damaged-goods sale

Wall Street Journal Wall Street Journal Jan 3, 09 8:41 AM CST
(Newser Summary) - A team of high-profile investors has bought the remains of failed bank IndyMac from the FDIC for $13.9 billion, the Wall Street Journal reports. The investors, including George Soros and computer tycoon Michael Dell, have agreed to share the losses from IndyMac's portfolio of troubled mortgages in a deal expected to cost the FDIC around $9 billion. More »

More about:  financial crisis • subprime crisis • bank • private equity • FDIC • bank failure • Michael Dell • Federal Deposit Insurance Corp. • IndyMac • George Soros • J. C. Flowers

Homeowners Need Bailout, Too: FDIC Chief

Regulator clashes with Paulson, Bernanke over relief for lenders

Wall Street Journal Wall Street Journal Oct 16, 08 9:25 AM CDT
(Newser Summary) - The FDIC chief is blasting the White House and Congress for focusing the $700 billion bailout on financial institutions and not giving homeowners facing foreclosure more help, reports the Wall Street Journal. Sheila Bair, a Bush appointee, says the government’s insistence that homeowners not profit from its help—while appearing unconcerned about institutional profiteering—has been “a frustration.” More »

More about:  financial crisis • bailout • subprime crisis • Henry Paulson • Ben Bernanke • housing crisis • Wall Street bailout • FDIC • Federal Deposit Insurance Corp. • Sheila Bair

Failed FDIC-Run Bank
Added Fuel to Subprime Fire

Feds seized Ill.-based Superior in 2001, but it continued to write, sell off bad loans

Wall Street Journal Wall Street Journal Jul 21, 08 9:21 AM CDT
(Newser Summary) - An Illinois bank seized by regulators in 2001 continued to write risky subprime mortgages for months after it was put under the day-to-day supervision of the Federal Deposit Insurance Corporation, the Wall Street Journal reports. Many of the loans—some with interest rates above 12%—have been foreclosed; a Texas bank that bought a portfolio of the loans is suing the government. More »

More about:  financial crisis • subprime crisis • foreclosure • FDIC • bank failure • IndyMac

 FDIC Hunts for IndyMac Buyer 

Feds want to see it as a whole; see more small banks failing in future

Reuters Reuters Jul 14, 08 2:40 PM CDT
(Newser Summary) - The Federal Deposit Insurance Corporation is looking to sell recently capsized IndyMac as a whole to one healthy bank, an executive told Reuters today. The FDIC took over IndyMac on Friday after nervous customers withdrew more than $1.3B in 11 days. "I don't expect there will be large bank failures," COO John Bovenzi said. "There will be small bank failures." More »

More about:  subprime crisis • money • banks • FDIC • Federal Deposit Insurance Corp. • IndyMac

'Hot Money' Prompts Small Bank Collapses

Deposits from brokers, used to ignite growth, fueled risky loans

New York Times New York Times Jul 4, 09 5:49 AM CDT
(Newser Summary) - A boom-time reliance on something known as "hot money" to boost growth has left many of America's small and regional banks with their fingers badly burnt, the New York Times reports. Brokers provided billions in deposits to ambitious banks seeking to grow fast, but the high interest rates needed to secure the cash prompted the banks to make riskier loans, leaving them high and dry when the economy soured. More »

More about:  bank • banking • bank regulation • FDIC • Federal Deposit Insurance Corp. • Office of Thrift Supervision

156 Stories

Today's Most Popular

Loading...

PREMIUM NEWS ARCHIVE

Online Banking Report Publishes "Mobile Banking 2.0: iPhone Edition".(Report) (Biotech Week)

As big banks falter, community banks do fine.(national) (The Christian Science Monitor)

Credit Losses Hit OH Banks Credit Losses Hit OH Banks.(Financial report) (National Mortgage News)

Banks create $70 billion bailout fund Fund: Banks' move likely to become election... (Daily Herald (Arlington Heights, IL))

Outer banks is spared from storm damage Outer Banks spared from Gabrielle's... (The Virginian Pilot)

Rumblings.(Royal Bank of Scotland PLC)(Bank of America Corp.)(LaSalle Bank... (Crain's Detroit Business)

N.Y. shores for Banks?("The Tyra Banks Show")(Brief article) (Daily Variety)

Private Equity Tests Waters in Banking.(acquisitions in banking industry by... (American Banker)

Banks buoys 'Barb'.(Elizabeth Banks, "What About Barb")(Brief article) (Daily Variety)

Banner Banking Year Does Not Translate To Ad Pages.(banking journals) (Min's B to B)