Don’t worry, just a little bump - $70 is just around the corner. Short traders just keep making those margin calls, mortgage the house if you have to. Fortunes await you! PO is for pansies and doomers. At $70 short some more ..... it is going back to $22 .... the world is awash with oil ........ reality has nothing to do with it, its all in those charts!!!!!!!!!!
Posted: Fri Jul 11, 2008 5:06 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
Please elaborate. If you're serious, and I can't imagine that you are, I've just gotta hear this.
Let's hope you're being sarcastic...
See "McCain's jackass economics advisor, Phil Gramm." _________________ "By the time individuals discover that remaining resources will not be adequate for the next generation, the next generation has already been born. " David Price
Joined: Oct 23, 2004 Posts: 5407 Location: New Jersey
Posted: Fri Jul 11, 2008 5:07 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Daculling wrote:
DantesPeak wrote:
Thanks. I guess Treas Sec Paulson is not well trained in the art of reviving zombies through
Dante, can you look at that FDIC release again? I think it looks like they just moved the assets to level 3 and reopened the bank under the same name. No marriage to another "solvent" institution. Your expertise is appreciated.
Based on this OTS report, you are correct that the FDIC will take over and basically just reopen the bank. I assume the FDIC assumes full liability for present and future losses.
The Federal Home Loan Bank Board is a major lender to IndyMac and I am not sure if they are going to look dumb and accept their losses here or blame the FDIC for not doing their job.
Quote:
OTS Closes IndyMac Bank and Transfers Operations to FDIC
Washington, D.C. — The Office of Thrift Supervision (OTS) today closed the $32 billion IndyMac Bank, headquartered in Pasadena, California, and transferred operations to the Federal Deposit Insurance Corporation (FDIC).
A successor institution, IndyMac Federal Bank, FSB, will open for business on Monday and be run by the FDIC. Depositors will have no access to banking services online and by telephone this weekend, but will continue to have access to their funds this weekend by ATM, through other debit card transactions and by writing checks. Online banking and phone banking services will be available again on Monday.
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.
“This institution failed today due to a liquidity crisis,” OTS Director John Reich said. “Although this institution was already in distress, I am troubled by any interference in the regulatory process.”
IndyMac is the largest OTS-regulated thrift ever to fail and, according to FDIC data, the second largest financial institution to close in U.S. history.
IndyMac had been in a precarious financial situation that was caused, in part, by an unprecedented stress in the residential real estate market, combined with the evaporation of the non-agency secondary mortgage market in August of 2007. The OTS had significant concerns with the bank’s funding strategy, had directed appropriate changes and was finalizing a new set of enforcement actions to address its numerous problems.
As a result of an OTS examination that began in January 2008, the OTS deemed IndyMac to be in troubled condition. An overwhelming majority of problem institutions are able to successfully modify their operations and business plans, work closely with their regulator and eventually return to a healthy condition.
IndyMac had reacted to market conditions and OTS concerns in November 2007 by changing its operations and business plan to build a foundation for recovery. IndyMac was actively seeking to arrange a significant capital infusion or find a buyer. The recent release of the senator’s letter undermined the public confidence essential for a financial institution and took away the time IndyMac needed to pursue a recovery.
With no viable alternatives and insufficient liquidity, IndyMac was placed into receivership. The OTS has appointed the FDIC as conservator of the newly chartered successor institution and will transfer most of the assets and liabilities of IndyMac to the new thrift.
Office of Thrift Supervision
moderators: this release from the government is not copyright protected _________________ It's already over, now it's just a matter of adjusting.
Last edited by DantesPeak on Fri Jul 11, 2008 5:09 pm; edited 1 time in total
Posted: Fri Jul 11, 2008 5:09 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
lawnchair wrote:
Daculling wrote:
IndyMac Failed. Wall of shame updated.
First FDIC in four years not to get a "receiving institution".
Like I said... I think they just nationalized this bank. They are going to take the full hit for the deposits.
From the FDIC site...
Based on preliminary analysis, the estimated cost of the resolution to the Deposit Insurance Fund is between $4 and $8 billion. IndyMac Bank, F.S.B. is the fifth FDIC-insured failure of the year. The last FDIC-insured failure in California was the Southern Pacific Bank, Torrance, on February 7, 2003.
These guys only have $50B FRNs to their name! _________________ -Dac
Winners never quit and quiters never win, but those that never win and never quit are idiots.
Joined: Dec 02, 2005 Posts: 6283 Location: Oil-addicted Southern Californucopia
Posted: Fri Jul 11, 2008 5:12 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
...IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets...
Live by the sword, get disemboweled by the sword.
Through all this happy horse manure, the thing that confounds me the most is that it was considered perfectly legal and respectable to shovel huge piles of cash to people who would stumble in the door with no real proof of their financial condition.
The lenders just took the borrowers' word for it. What is wrong with this picture? _________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
Last edited by Zardoz on Fri Jul 11, 2008 5:14 pm; edited 1 time in total
Posted: Fri Jul 11, 2008 5:12 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Daculling wrote:
The Federal Home Loan Bank Board is a major lender to IndyMac and I am not sure if they are going to look dumb and accept their losses here or blame the FDIC for not doing their job.
Thanks Dante, I knew I was missing the reasoning behind this action. _________________ -Dac
Winners never quit and quiters never win, but those that never win and never quit are idiots.
Posted: Fri Jul 11, 2008 5:27 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Uh oh.
Quote:
Banking regulators close IndyMac
The Office of Thrift Supervision shuts down mortgage lender IndyMac and transfers the operations to the Federal Deposit Insurance Corporation.
Last Updated: July 11, 2008: 6:59 PM EDT
LOS ANGELES (AP) -- IndyMac Bank succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures on Friday when banking regulators seized the mortgage lender's assets.
The Office of Thrift Supervision said it transferred IndyMac's (IMB) operations to the Federal Deposit Insurance Corporation because it did not think it could meet its depositors' demands....
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.
Posted: Fri Jul 11, 2008 9:17 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Twilight wrote:
lawnchair wrote:
First FDIC in four years not to get a "receiving institution".
The way I see it. some banks can be swallowed whole, others need to be chewed. For something that size, a take-over is probably difficult to arrange overnight. The bigger they are, the more work it is going to be.
If I understand it correctly under the current law FDIC can run the bank for up to two years and try to find a buyer.
Of course in two years time a lot can happen, like the law being changed.
It is interesting to see what the FDIC's (and Government's) next move is going to be and else is being caught in this directly with their pants down.
Joined: May 19, 2005 Posts: 759 Location: Merry Ol' USA
Posted: Fri Jul 11, 2008 9:25 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
IndyMac's now a carcass. Aside from the fact that a shitload of depositors are now going to see 50% or so return on their deposits, would you deposit your money there knowing it was under federal administration trying to find a buyer while they picked the bones clean to recover everything they could? I sure as hell wouldn't. I think you can almost guarantee the only thing they'll be selling is a bunch of buildings and maybe the better parts of the portfolio, and there won't be any IndyMac anymore as the name is for crap now. After next week the only depositors left will be those hoping to recover some of their lost money that were over the 100k limit.
You know, the fact that they keep waiting until the market's closed before they announce this crap is proof positive that there's some serious gastrointestinal distress going. Bear Stearns? After hours. Emergency rate cuts? After hours. IndyMac? After hours. _________________ After fueling up their cars, Twyman says they bowed their heads and asked God for cheaper gas.There was no immediate answer, but he says other motorists joined in and the service station owner didn't run them off.
Phil Gramm, the former Texas senator and an economic adviser to John McCain, told a Washington newspaper that Americans have become "a nation of whiners" and that the economic recession that has descended upon us in the final months of the Bush presidency is all in our heads.
Joined: May 20, 2008 Posts: 355 Location: I have a whole ward
Posted: Fri Jul 11, 2008 10:16 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
I wonder if our pal Osama Bin Laden and his merry men are thinking.......this would be a really great time to blow something up again, Say a refinery? You know, just give us a little push over the cliff! _________________ Viddy well, little brother. Viddy well.
Posted: Fri Jul 11, 2008 10:19 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Look on the bright side, at least FDIC is pre-funded to a respectable degree. The FSCS is not - IMB would have wiped it out - and UK banks are lobbying successfully to keep it that way, claiming ring-fencing capital would place their finances under stress. Maybe that is true and not feigned. This is discussed quite openly in the news media and causes no alarm as we have no experience of banking failures comparable to that of the US during the Depression. As we have no such ghost to haunt us, the discussion remains abstract.
When a large US bank collapses and deposits are not left whole, you do not have to wonder where the insured difference is going to come from.
Joined: Dec 07, 2005 Posts: 1714 Location: Australia
Posted: Fri Jul 11, 2008 10:33 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
I wonder if our pal Osama Bin Laden and his merry men are thinking.......this would be a really great time to blow something up again, Say a refinery? You know, just give us a little push over the cliff!
I am sure Osama, if he indeed still is alive, has been in many discussions with our friends in the Whitehouse about various methds of further progressing their agendas. Another falseflag being just one possibility. _________________ Lets take a ride, and run with the dogs tonight
In suburbia
You cant hide, run with the dogs tonight
In suburbia
- Pet Shop Boys
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