THE FIRST BANK JUST WENT BANKRUPT!!! It has begun!!!
Submitted by - on Fri, 07/11/2008 - 20:22NEW YORK (CNNMoney.com) -- In the second largest bank failure in U.S. history, Pasdena, Calif.- based IndyMac was closed down on Friday, according to a press release on the FDIC's website.
The bank's operations will be transferred to the Federal Deposit Insurance Corporation.
According to the FDIC, IndyMac's failure will mean about $1 billion in lost deposits held by approximately 10,000 customers. The agency says the failure will cost it between $4 and $8 billion, based on preliminary estimates.
In a conference call late Friday night, FDIC Chairman Sheila Bair said "it's possible this will be the most costly bank failure in history, but it's too soon to say." The failure "could also affect premiums paid by all banks for deposit insurance," she said.
Customers who bank at IndyMac Bank will automatically have their funds transferred over to the IndyMac Federal, FSB, which will be controlled by the FDIC. They will have uninterrupted customer service and access to their funds by ATM, debit cards and checks, in the same way as before.
However, customers will have no access to on-line and phone banking services this weekend, according to the FDIC, but services will resume on Monday. Loan customers should continue making loan payments as usual.
IndyMac, with total assets of $32.01 billion and total deposits of $19.06 billion, is the fifth bank to have failed this year. Between 2005 and 2007, there had been only three bank failures. The 104 banks that FDIC has taken over in the last 15 years have combined assets of $14.2 billion, according to FDIC annual reports.
Continental Illinois was the largest bank failure ever, with $40B in assets when it failed, in 1984 according to FDIC archives.
When a bank shuts down, all accounts are insured to at least $100,000. Certain accounts can be insured in excess of the $100,000, but customers with more than $100,000 in their account may require review by an FDIC Claim Agent according to an FDIC factsheet.
"Those with uninsured deposits will get at least half that money back, and they could get more back, depending on what the FDIC gets when it sells off the bank assets," said Bair.
On the conference call, Bair said, "there will be increased failures, but it will be within range of what we can handle. People should not worry."
Read the rest here:http://money.cnn.com/2008/07/11/news/companies/indymac_fdic/index.htm?postversion=2008071120
The FDIC only has enough capital to cover 1% of what they guarantee...so now would be a good time to get your money out of the bank.
Taxpayer to fund May & Mac?
Thanks for reviving the post,kitkat. I read earlier that the USGov are to rescue Mac & May? Then I read somewhere that the largest stakeholders in those company's are chinese, belguim, etc (I.E: substantially Foreign owned) so that it would need US taxpayers backing to ensure that the foreign share holders are kept safe. Any comments?
'I always think of all you canvassors and precinct leaders and delegates at the front line and caucuses.
Good luck out there &Thank you. You're a gift.
'I always thank of all you canvassors and precinct leaders and delegates who were at the front line and caucuses.
Good luck out there &Thank you. You're a gift.
Not Good
I heard that it was Chuck Schumer was the one who "started the run". My friend told me they were investigating that whole deal. What would a NY senator want to do that to a west coast bank for?
The House of Cards
Is about to come down!
Man was born to be free and independent
interesting article
even the neocons are getting it. check out michaelsavage.com I know he is a war monger but on his website today he has an article about bear sterns you may find interesting? it's the one with the pict. of JP morgan
A storm is brewing. The tide
A storm is brewing. The tide is coming in.
The silver lining.
Bank failures deflate the currency. The scale of our current inflation is far greater than the deflation caused by IndyMac's failure, but every little bit helps.
-jcr
"The problem with trying to child-proof the world, is that it makes people neglect the far more important task of world-proofing the child." -- Hugh Daniel
Not when the fed pays the depositors plus 50%...
to uninsured deposits like they are doing here.
headline
It's funny to see your sensationalist headline. Are you a newspaper reporter?
In his defense...
It is HUGE news, as it was the second largest bank failure in history. On the other hand, had he read his own post, he would have realised it was the fifth failure of the year. For more details, see my post below...
I agree. This is huge. I
I agree. This is huge. I had underwritten loans to sell to IndyMac. They actually were a prudent mortgage bank. The problem was they started dealing with brokers who sold them alot of lies...my previous employer included.
Whoever started the idea of NINA's should be...
put in jail. This was just way out of hand. Now, I'm not one to put the blame squarely in the court of the mortgage lenders, as the borrowers should have the intelligence to know what they could afford, but there was a huge amount of deception as well.... a crazy conflagration born through the conjunction of artificially low rates and mutual borrower and lender greed.
Money (or rather, money as debt) is the root of all evil.
BTW: Since you're connected to the business, do you have any projections on the next failure? My bet's on Downey.
I agree that the NINA, SISA
I agree that the NINA, SISA and SIVA loans were very risky, but they were created for a specific type of borrower. Like someone who owned their own business and showed a loss on the tax return every year. The loss was only on paper, but that borrower wouldn't qualify for anything because of it. The real problem is the lenders started ignoring their own guidelines and giving these loans to people that shouldn't have ever gotten them. Or, they entered into a brokered relationship with another mortgage originator who lied to them...which is what my company did.
I really don't follow the mortgage news much anymore, so I don't know who will follow. I lost my job back in November and haven't looked back.
I believe it was number 5 this year...
But it was by far the largest so far (this year)... second largest in history. IMB had over 30B in assets, with the second closest (ANB) coming in at around 2B (if I remember correctly).
KEEP YOUR EYES ON Downey Financial (13Billion). I'd be betting it closes within the next few weeks. There are a few others on my watch list (maybe WM @ 328B, Px/Bk = .23), but the ones that have failed so far....
IndyMac Bank, Pasadena, CA July 11, 2008
First Integrity Bank, Staples, MN May 30, 2008
ANB Financial, Bentonville, AR May 9, 2008
Hume Bank, Hume, MO March 7, 2008
Douglass National Bank, Kansas City, MO January 25, 2008
Year Failures
2007 3
2006 0
2005 0
2004 4
2003 3
2002 11
2001 4
2000 7
Oh, And during the peak of the S&L crisis (BTW: See Keating 5, for some dirt on McCain if you're not already up on it)
Year Failures
1989 534
I'm going to go ahead and predict that the coming months/years will make the S&L crisis and the Great Depression pale in comparison.
http://www.fdic.gov/
I suspect that more will
I suspect that more will follow soon
First?
This is at least the second. Bear Stearns really went bankrupt too.
"The body is but a vessel for the soul,
A puppet which bends to the soul's tyranny.
And lo, the body is not eternal,
For it must feed on the flesh of others,
Lest it return to the dust whence it came.
Therefore the soul deceives and despises."
Let's say it's the first one allowed to fail
Paulson warned of it yesterday.
Yes, the comment by Paulson. It seems that the decision was
made sometime ago...
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---
government of the people, by the people, for the people
---
one down !
it's gonna be a sick and crazy summer .My bank is now located in Montreal Canada I hope you all use that logic.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Stop the NWO....It's just illumi..Naughty !
"My bank is now located in
"My bank is now located in Montreal Canada I hope you all use that logic."
Umm, if there is a catastrophic failure of the US financial system, do you really think Canada will be safe?
If a battleship sinks, the fishing boat next to it is going to get sucked under as well...
www.ronpaul2008.com
www.ronpaul2012.com
good post...
I've been trying to think what I should do besides something as drastic as cashing everything out and buying gold, silver, food supplies, etc....
What do we do about our 401K's???
Help!....any Ron Paul financial advisors out there with some good advice?
I thought I was being smart by switching to international stocks...I have my mortgage with a local credit union...should I move my checking account from Washington Mutual, since it's rumored they are in deep trouble too?
R3VOLution
401(k) rollover...
Peter Schiff's fund accepts rollovers from 401(k)'s....Just a thought since he seems to be one of the very few out there making sense.
Listen up
You know who controls the capital flow.
You know they can do what they want because they control it.
So when you put up a post like this it would serve everyone to say it loud and clear.
The people in control have decided to STOP PROVIDING LIQUIDITY to Indymac Bank.
Ok?
Indymac and every bank within a fractional reserve system is technically ILLIQUID.
They had like 27 dollarS and forty six cents in deposits and two hundred and seventy four million dollars in loans of which half were to people they gave mortgages to that shouldn't even be able to get a used car loan.
CNN is a propaganda machine everything they tell you is a lie.
The fed closed Indymac for whatever reason and CNN is using the event to scare you, make you angry and make you feel helpless......stop posting this crap here....go scare the sh%$ out of someone else.
Please research this post and stop posting MSM clap here. Do you know who owns the AP and Reuters? Do you know who owns the Fed who closed Indymac? STOP WORKING FOR THESE CREEPS!
Unify
Quick, Quick...get your
Quick, Quick...get your worthless paper money out of the worthless banks....
Please, let's be realistic. If the paper money was worthless,
people would not care about this, but in reality, people made real debt obligations to get the paper money. I understand that you think the dollar system is a fraudulent system and I agree, but I believe that your statment is inaccurate and quite misleading.
One of my friends said to me "It's all funny money anyway." A few days later, his phone was disconnected because he did not pay the bill on time.
Perhpas, you wish the paper money to be worthless, so that the debt obligations might mean nothing, but in reality, if people ignore their debt obligations, there are real consequences that they have to deal.
Often, I get the impression that those who say "the paper money is worthless" are actually hoping that their debt obligations to be meaningless.
I don't think bankers would let us off the hook so easily.
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---
government of the people, by the people, for the people
---
I was joking...lighten
I was joking...lighten up.
We all have bills to pay with this "funny money" - I just hope people realize that the failing dollar is the reason for high gas/food prices and that we need to return our paper money back to the silver and gold standard.
Notice gold and silver going through the roof again....hmmm
Okay, you were joking. I will lighten up. Thanks.
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---
government of the people, by the people, for the people
---
If he had the money of the Constitution, he could
have traded some of it for the funny money to pay his phone bill.
Just because a person has debts in fiat currency doesn't mean they should hang on to it.
Some of you will be able to pay your houses off much sooner than you thought because you prepared well.
In my opinion.
___________
Lisa C.
“Elections are short term efforts; revolutions are long term projects.”
--Ron Paul
Join the rEVOLution here: http://www.campaignforliberty.com/
Ron Paul "Sign Wave Across the USA" -- November 5th!
Well said Greed.
I'll be glad to take the above poster's money of his/her hands.
Maybe no friends in high places
IndyMac might not have had any "special" friends to help them like the Bear Sterns deal, so the FED did'nt bother this time. Or who knows, maybe the FED decided it's time to let the chips fall where they may, no money left.
-
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"Ineptocracy: a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed are rewarded with goods and services paid for by the confisc