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?AP: "The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse".
"In the 11 days that followed the letter's release, depositors took out more than $1.3 billion, regulators said".
"In a statement Friday, Schumer said IndyMac's failure was due to long-standing practices by the bank, not recent events".
"If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," Schumer said. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."
"The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history".
5 comments:
Indymac is going to be the first of many failures as we work our way through this bust. There will be more banks failing and it won't be too long before some well known home builders throw in the towel.
Only after multiple failures and bankruptcies will we start "the healing process" (as Oprah would say).
And let's not forget about those mortgage and bond insurers.
John,
No doubt. Keep your powder dry. I just watched Mary Poppins with my son, and this week's events has put this song in my head, again and again:
http://tinyurl.com/55bx5o
"All from tuppence, prudently
Fruitfully, frugally invested
In the, to be specific,
In the Dawes, Tomes
Mousely, Grubbs
Fidelity Fiduciary Bank!"
Terminator-x,
Yet another well-known "run on the bank"! Perpetrator: little kid who just wants to feed the birds.
Indymac is one of the more notorious names I see on foreclosures around here. I wonder what, exactly, about their lending practices was so messed up.
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