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Indymac - Politics, Business, Civil, History - Posted: 16th Jul, 2008 - 7:47pm
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From mortgage lending to trouble...
Post Date: 9th Jul, 2008 - 5:35pm / Post ID: #
NOTE: News [?]
Indymac
IndyMac
After announcing on Monday that it would shutter its mortgage lending operations but continue business as a retail bank, IndyMac was hit on Tuesday by a potentially fatal blow to that part of its business as well. Bank depositors rushed to withdraw money from the bank, even though such deposits are insured up to $100,000 by the Federal Deposit Insurance Corporation and IndyMac stock fell even further to $0.44 per share.
Ref. https://www.mortgagenewsdaily.com/792008_IndyMac_Bank_Run.asp
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Indymac History & Civil Business Politics
This is bad. It will be interesting to see how this plays out - will the Powers That Be bail out IndyMac, deciding that they are too big to fail as they did with Bear Stearns? Or will Freddie and Fannie be seized next?
| QUOTE |
In IndyMac's Wake, Are Fannie Mae and Freddie Mac Safe? After IndyMac Goes Bust, Concern Centers Around Mortgage Giants Fannie Mae was created during the Depression as part of the New Deal as a way to revive a collapsed housing market by providing mortgage guarantees to low- and middle-income Americans. Today they own or guarantee a mind-boggling $5 trillion in loans - far more than any other lender, which is why the fear that they could go under has been so nerve rattling. .... If Fannie and Freddie were to fail, analysts say mortgage rates would soar, mortgage lending would grind to a halt and borrowers of all kinds would pay higher rates - sinking the economy into an even deeper downturn. That's why most analysts believe the government would never let it happen. "Both Fannie Mae and Freddie Mac play such a vital role in the mortgage market," said Greg McBride, a senior financial analyst for Bankrate.com. "They are essentially too big to fail." |
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Indymac
You are probably right. I don't know what is the best thing to happen. I can see this country headed in a big downward financial spiral. I have a vested interest, in that our mortgage was sold to to IndyMac a couple years back. Even though news reports say their mortgage division was sold off, we have not seen any information indicating so. We always get notice when our mortgage is sold. Seems to be common practice as we go through mortgage holder changes every couple years. It will be nice to get the darn thing paid off. In the meantime, while I hate to see our government continue to bale out these companies when they are already so far in debt, I really would like to see IndyMac make a go of it, at least until I know what is going on with our mortgage. 
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Indymac
That is the real issue is does the government only bail out the big companies or all of them after all fair is fair. I would like to see all but the reality is no government could afford that. I hope it works out for you as well as the rest of our American friends here.
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Indymac Politics Business Civil & History
This is the second largest bank failure EVER in the United States, and the mainstream media is virtually ignoring it. There doesn't seem to be any great coverage or any real outcry. That they are investigating for fraud doesn't surprise me; however, my opinion is that they simply were overwhelmed by subprime mortgage failures.
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