IndyMac's Info
FDIC says IndyMac failure costs more than expected
Surprise Surprise, atleast it was just a bit over the high-end of their insurance cost estimate. It will be interesting too if the FDIC can sell IndyMac’s assets whole or in pieces and what sort of prices they will fetch. If we use fair market valuations then that should help us determine the value of certain types of asset classes are actually worth when they need to go to market.
Another interesting piece of information in the Reuters release was their “problem banks” watch list is now up to 117, from under 100 less than a month ago. I believe this is a sign of more things to come as we de-leverage the banking system and get rid of all the excess. Delaying the medicine no matter how painful always makes the recovery worse.
Release:
A U.S. banking regulator said the failure of mortgage lender IndyMac Bancorp Inc will deliver a bigger blow to its insured deposit fund than originally expected. The Federal Deposit Insurance Corp said on Tuesday it now expects IndyMac’s failure in July to cost its insurance fund $8.9 billion, compared with the previous expected range of $4 billion to $8 billion.
IndyMac Bancorp files for Chapter 7 bankruptcy
Another chapter is the IndyMac saga. According to Reuters, IndyMac Bancorp filed for Chapter 7 bankruptcy protection in court. Here is the release:
IndyMac Bancorp Inc. once one of the largest U.S. mortgage lenders, has filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors.
The Pasadena, California-based company filed for Chapter 7 protection on Thursday with the U.S. bankruptcy court in Los Angeles, indicating it plans to liquidate. IndyMac expects the court to appoint a bankruptcy trustee promptly.
Indymac Bank REOs
After the roller coaster have experienced after the OTC and FDIC shut their doors last week and took over. Just as they stated in a statement made last Friday, they opened the doors of the bank on the following Monday to reduce the panic against the bank.
We would of had a review last week but when they shut down the bank they also closed the website, that is not the case now. They have a standard search but many listings with about 85% of having pictures. They also have an email alert feature so you can have alerts send to you when properties arrive in their REO department that meet your real estate criteria.
Bank Info:
IndyMac Federal Bank, FSB (Federal Savings Bank) is a bridge bank created to manage assets and liabilities of IndyMac Bank, FSB until they can be disposed of. Before its failure, IndyMac Federal Bank was the largest savings and loan in the Los Angeles area and the seventh largest mortgage originator in the United States. The failure of IndyMac Bank on July 11, 2008, was the second or third largest bank failure in United States history, and the largest failure of a regulated thrift.