The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.
And Sen. Chuck is whining about being asked about his comments…..
Every bank is close to the edge due to the rapid reduction in real estate values. This should not be a surprise to anyone. Sen. Chuck needs to stand up a take some responsibility for his statements. The Bank’s did take some chances and some of them have paid with the closing of their business. You can see a list of failed banks / Lenders on the implod-o-meter, there is a link in our blog roll. The Media needs to report accurate information to help settle this emotional market. Even BofA will no drought have some tuff times ahead of them to since they did complete the Countrywide deal. I can not understand why they did complete this deal other than they were chasing their money they lent Countrywide a short time ago.
“Liar Loans” well lets look at this clearly. There is no question that these got out of control but these loans are and will be needed for self employed people. It is nearly impossible to qualify for a loan full doc if you are self employed regardless of your credit scores or your ability to repay a loan. If Stated Loan Progams are not allowed due to some Federal regulations then this will tear at the basic fundaments of the American Entrepreneur Sprit.
If the Media does not start to report accurate information they will be doing the same thing as Sen. Chuck. After the fact Fed regulations or reckless comments from our leaders will only prolong the situation. It is time to remove emotion and think clearly about how to get back on track.