Unfortunately, the above actions will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3,400 or so over the next couple of months, which should reduce our operating expenses by roughly 60%.
I very much regret that the reality today, however, is that we can no longer afford this program given our need to preserve capital and return to profitability. Therefore, we will be providing employees with a minimum 30-day notice of the termination of their employment (effectively, 30 days severance), with employees covered under the Federal WARN Act and similar state statutes (WARN) receiving 60 days of advance notice prior to the effective date of the their termination. Affected employees with five or more years of service will receive a minimum $20,000 severance, including any compensation payments made during the notice period.
Come on you guys. Can't you take IMBs word at face value? They are responding proactively to a changing market. This is good news. Don't mistake a medically necessary diet for starvation.
I personally switched my money over to NASCARmac Bank about five years ago, because I was worried this might happen. A lot (and a growing number) of people like to drink beer and bank.
The study by economist William Emmons of the St. Louis Fed concluded that "government interventions directly in housing or mortgage markets are not necessarily the best policy responses."
What's going on with Freddie and Fannie? Aren't they a bigger story than IndyMac? It looks like they'll have to be bailed out soon--of course, by you and me!
What do they mean by "servicing retention channel."?
Keeping the loans they have and keeping them performing. The servicing channel has been covered extensively in Tanta's UberPosts. Like CFC and BAC this is one of the jewels.
Words such as anticipate, believe, estimate, expect, project, plan, forecast, intend, goal, target, and similar expressions, as well as future or conditional verbs, such as will, would, should, could, or may, identify forward-looking statements that are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified.
A lot of these people are probably in the same boat as the dot.commers in 2001 -- they could be looking 3 years+ of unemployment.
I remember college graduates in technical fields offering to work for free just to get industry experience for a brief time there (usually they'd get some sort of paying job just for demonstrating that much interest in doing real work).
I wonder if finance and economics students are headed for the same boat.
Sometimes it's easy to forget there are relatively innocent victims out there...
a Southern California retail bank branch network, including 33 branches and roughly $18 billion in deposits, of which over 96% is fully covered by FDIC insurance
Nice to see that IMB is depending on FDIC to backstop them to the tune of $17.3B
I thought they (like CFC) had already decided to just focus on originating GSE loans. They can't even make money doing that??!!. This does not bode well for the housing market.
The study by economist William Emmons of the St. Louis Fed concluded that "government interventions directly in housing or mortgage markets are not necessarily the best policy responses."
Officials in China were making this same argument about their stock market not long ago.
Is the US finally deciding to follow in the footsteps of China and take a chance at free-market capitalism?
If we follow the same rate of income decline and household debt write-downs as happened over '29-'39, to get to a normal household debt-to-income ratio, the downleg will be five years. And, I would guess that the upleg will be tenuous and rickety, as it was over '34-'39.
Sad but true. I feel for the workerbees.
Shitty system, this Central Bank/cheap and easy credit crap. May it blow up soon and be gone forever.
IndyMac CEO Perry asks board to cut his salary by 50%... since they're reducing overall expenses by 60% by reducing headcount, shouldn't his loss be quite a bit larger? Never mind the likely "parachute" sitting somewhere in the wings for him.
Larry Silverstein (WTC Hero) says Lower Manhattan commercial re is doin' just fine! He says he hasn't seen rent drop much, but when he talked about future rents his eyes started to convulse.
I wonder if finance and economics students are headed for the same boat.
Sometimes it's easy to forget there are relatively innocent victims out there...
ac
"Victims" is a funny word. And used in funny situations, too.
I prefer to call the students who can't get jobs "unmotivated" and "underperforming" at school or in job searches.
The good thing about job losses is it spurs innovation and entrepreneurialship. During tough times, Darwinism is toughest. Sometimes, it is a bummer to be the weakest.
Prices are going down so fast they can't go down much longer,'' said Christopher Thornberg, president of Beacon Economics LLC in Los Angeles, who predicts a total decline of 30 percent nationally in the housing recession.We've never seen prices fall like this.''
The competition in the job market is going to be incredible. Most of these people being laid off from all these banks and mortgage companies will have similar looking resumes.
And let's not forget that many (if not most) own homes. Add those homes to the inventory lists. Which will further hurt the banks and bring another set of writedowns and layoffs.
getting the shaft
[Our severance program, which provided one month of pay and one month of Indymac-paid COBRA insurance coverage for each year of service, was clearly the most generous in the mortgage industry, if not among most of the Fortune 500. I very much regret that the reality today, however, is that we can no longer afford this program given our need to preserve capital and return to profitability.]
The other thing is that these newly unemployed are going to find that generally they are in line for some severe pay cuts should they run into something.
doom,
Yes, my belief is the areas that had large mortgage and banking centers (ie workers with access to easy money and easy loan qualifications for home buying) will see the worst home price declines (except possibly NYC). Crushed employment compounded by silly loans equals inescapable trouble.
As a result of the above, we have made the difficult decision,
effective July 7, 2008, that we will no longer accept any new loan
submissions or rate locks in our retail and wholesale forward mortgage
lending channels, except for our servicing retention channel
WHERE IS THE SEC?
The CEO was on teevee last week claiming this was not going to happen??
My < 100k Countrywide CD is coming due and I plan to open one with IMB. Best rates around, FDIC insured. Why not? FDIC may be insolvent, but IT must be to big to fail. I already got the shotgun and canned goods ready...what the hell, I'll take a chance on a slightly less negative real return.
doom,
My instincts say it will get hurt, but I don't think it will get crushed to the extent of places like Orange County will. However, I did include the word possibly, because I am not completely confident NYC won't be crushed.
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
HEAR YE! HEAR YE! The Stock markets are
headed for capitulation this week. Prepare for a huge fall that can't be
supported by any more manipulation.
Evidence this from :
--continued selling into any rises
--more terrible economic news
--more troubles reported by big financial and housing concerns.
Hey, many of you guys here are really smart (I mean it, seriously). Why don't you start your own bank? I bet investors would rather pony up for a brand new bank with a pristine balance sheet than to sink more capital into the rat-holes that are out there now. Come on, somebody, anybody...
There is some crafty double-speak in this paragraph that is bound to PO IMB employees.
"Therefore, we will be providing employees with a minimum 30-day notice of the termination of their employment (effectively, 30 days severance), with employees covered under the Federal WARN Act and similar state statutes (WARN) receiving 60 days of advance notice prior to the effective date of the their termination. Affected employees with five or more years of service will receive a minimum $20,000 severance, including any compensation payments made during the notice period."
Usually, severance is pay made after termination of employment, not the pay you receive in your last 30 or 60 days of employment. Unless you have 5 or more years of pay, and earn more than $10,000 per month, it looks like there is zero real severance -- good-faith payments made at termination of employment.
Will IMB actually make POed employees come to work for 60 days and sit at their desks to collect "severance?" Not too smart.
Notice also that they've terminated paid COBRA coerage health benefits worth potentially thousands of dollars (for long-time employees) with ZERO NOTICE. Their health plan better explicitly say they have this option.
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
smallfryallcash writes:
My < 100k Countrywide CD is coming due and I plan to open one with IMB. Best rates around,
Just make sure that you ask for your interest to be paid out monthly, not reinvested. Reinvested interest in excess of 100k will not be covered when FDIC announces takeover of IMB bank by another institution, shortly.
Aheadofthecurve writes:
Hey, many of you guys here are really smart (I mean it, seriously). Why don't you start your own bank? I bet investors would rather pony up for a brand new bank with a pristine balance sheet than to sink more capital into the rat-holes that are out there now. Come on, somebody, anybody...
Aheadofthecurve | 07.07.08 - 5:04 pm | #
It's easier to pick at the carcases of the dead and dying banks than start a new one.
I don't understand this talk about no bid for mortgage loans and fire selling. Why don't they just use the same valuation construct the Fed used to value their BSC mortgage-backed paper?
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
Well some of the crazier types here have suggested that commodities are just another bubble that are masking the onset of outright deflation.
This kind of bolsters their case, but hopefully it's temporary and doesn't get them back out of their caves.
What happens to all the Dum Dums? Are they part of the severence package or will they be auctioned off at a later date? If so, will it be by flavor, so I can bid on the Mysterys?
Some points on the size of IndyMac that I think are worth noting ...
Total assets of $33 billion at the end of 2007.
It was the largest originator of Alt-A loans as recently as Q3 '07, according to National Mortgage News
Total production volume last year was $77 billion (making IMB the country's ninth-largest residential mortgage originator).
Its savings and loan unit, IndyMac Bank, FSB, is the 7th largest in the country.
And a last bit of food for thought: So far, New Century Financial was one of the biggest mortgage companies to collapse/stop lending as part of the mortgage crisis. It originated $59.8 billion in mortgage loans in its last full year of production (2006). So if IMB is truly shutting down almost all forward loan originations, you're losing an originator that made 29% more loans than the biggest independent to fold up shop so far. American Home Mortgage was about the same size as New Century, origination-wise, with $58.9 billion for 2006.
After reading the press release and perusing the 10-K, it reads like IndyMac is getting out of the mortgage banking business and returning to its roots as a thrift, save for the reverse mortgage division.
The FDIC is trying to protect the deposits and the mortgage banking division is (now) a drag on profits and capital.
Some good news: Stanford Kurland's "PennyMac" leased 27,000 sq. ft. in Calabasas last month. I guess he's thinking that they're going to be busy (buying up distressed debt).
Indymac down. Freddie Mac down. PennyMac rising. Anyone know who's invested in Pennymac?
After reading the press release and perusing the 10-K, it reads like IndyMac is getting out of the mortgage banking business and returning to its roots as a thrift
And changing their name to the Bailey Savings and Loan.
I tried to drum up some sympathy for the guy. He is wearing a suit and tie after all. But then I read about how he destroyed dozens of his victims - people who will never recover.
Can IndyMac unilaterally stop COBRA for people they lay off in the next few weeks?
Unless the law has changed since the last time I checked, the COBRA law just means you can stay on the company's group medical plan for two years after termination--at your own expense. You pay the full premium, which is a lot of money for family coverage. (It would likely be even more if you got a policy all by yourself, with no group rate, and if you or a family member has a medical issue, you probably can't get individual coverage at all, so that's what COBRA does for you.) Some companies have given their severed employees PAID cobra benefits, meaning the company still covers its share of the premiums for some specified period. IndyMac apparently is not in a position to shoulder that expense for several thousand ex-employees.
Misean, I was there recently. Nice place with some duressed major employers. I was hoping to see Denise Richards at the grocery store. Didn't happen, but that bald dude from Deal or No Deal was lurking in a bar.
"and securities or the bid/ask spreads are abnormally wide, ..."
Sounds like real estate in general.
I think if there is a need to sell, then ask is too high, so bid becomes the real price. If the assets are profitable, then there's no need to sell and the seller can wait for bids to come up and meet ask.
This nonsense about the mortgage bonds being underpriced relative to their value is just that - nonsense. If they were such a good deal then Indymac and other lenders can just hold on to them for lots of profits.
Nobody had a problem pricing to market when market was zooming. But now that nobody wants that crap everyone wants to value stuff against some imaginary "nostalgic" sense of appropriate price. Foolishness, I say.
The next thing bear markets like this can do is take away your choices, by dropping so hard so fast that you won't even think about playing a bounce, and then being too low to short.
So I'm going to sell any weak opening. Be proactive.
"It's easier to pick at the carcases of the dead and dying banks than start a new one.
Dean | 07.07.08 - 5:10 pm | # "
Unless you believe banks will not exist in 10 years than the real payoff will be in either:
(1) Identifying those existing banks that will survive and thrive as their competitors fold, or
(2) Getting in on the ground floor with new banks.
You should have gone to the Chili's down the road a piece. Jessica Simpson likes the place. Not much between the ears, but she's damned easy on the eyes.
Paul,
I don't think anybody doubted that he was right; however, it is considered poor form to tell the masses before the insiders have all cleared their positions. It violates the club rules. The man was a snake for letting the public see the gears grinding.
In the spring, the regional-planning agency's board took another major step by approving a $42 billion transportation plan designed to mesh with the Blueprint. Together, both are projected by 2035 to reduce the amount of driving per household by 8% and global-warming emissions per household by 12% from their 2005 levels.
Now, California's Transportation Department is offering grants to help other areas in the state create their own Blueprints.
Now if we could just get banks (and governments) that aint run by crooks!
IMB deposits are 18bn, and are 96% FDIC insured. Sounds good until you do the math - that's 720 million of individual depositors' money that's at risk of disappearing. Not good.
If indymac is a leader in severance packages the this country is well and truly hosed.
If you were one of the gang of four and were let go today, you'd get 15 months severance. lucent routinely offered more during divestitures and most folks kept their jobs on top of it.
OK, so even beyond the investors and the employees of IMB, this is a significant hit for future borrowers. The disablement of one more large lender may put (more) pressure on the ability of a typical borrower to find mortgage funding.
Unless you believe banks will not exist in 10 years than the real payoff will be in either:
(1) Identifying those existing banks that will survive and thrive as their competitors fold, or
(2) Getting in on the ground floor with new banks.
Aheadofthecurve | 07.07.08 - 5:35 pm
So while I watch what's happening, I review financials by fully reviewing the FDIC statements online.
Have we all forgotten about Downy Savings? Here's the latest news:
Newport Beach-based Downey Financial Corp. said President Frederic McGill left after eight months with the savings and loan operator. McGill was Downeys third president in less than four years. Downey, which doesnt hold conference calls or offer other insights into its inner workings, appeared to have been grooming McGill as a potential successor to Chief Executive Dan Rosenthal. In recent months, McGill, not Rosenthal, had been providing comments for Downeys quarterly financial results. The company didnt say why McGill left. Bad home loans made by Downey have led to its stock dropping more than 90% in the past year. It holds a recent market value of $75 million with assets of about $13 billion
Answer to question about "PennyMac" backers: Blackrock and "Highfields Capital". Highfields Capital is interesting. Some folks that spun out of the Harvard Management Company. Blackrock, I imagine has plenty of access to global capital, and it looks like Highfields does too:
"Both BlackRock and Highfields will serve as strategic partners, enhancing PennyMac's relationships with global financial institutions and providing valuable input in structuring PennyMac's investment management activities."
The two agencies will, among other things, share information on banks' and investment firms' cash and trading positions, proportion of debt to capital, financing resources and risk-management systems.
Action was required the weekend of March 15 because Bear Stearns "would have difficulty meeting its repayment obligations" once trading began in Asia on March 17, the summary said.
In addition, the Fed also waived certain capital requirements for J.P. Morgan Chase to smooth the takeover, the summary said.
As part of that merger, the Fed eventually agreed to lend almost $29 billion to finance the takeover.
No way! L.A. is king in that dept. You see, there is no big problem with housing here, and the economy is strong and diverse. Plus, everyone wants to live here. Well, west of Western and north of the 10 anyway. Seriously, just ask any realtor. They'll set ya straight!
They must have missed the part where DSL had 14.3% non-performing assets at the end of May. I guess all the women are good looking too, thanks in part to HELOC-funded plastic surgery. Those OC women are at least 14.3% silicone these days.
for category 1 I've been nominating BofA & JPM for some time(and even bought some in April for a little profit before I got stopped out).
As the only two banks(that I know of) that have Check 21 certification and scale they will always have better cash situations than any other bank, even when they screw up. My understading is that check 21 approval is a bitch.
BoA's hidden issues are these:
1) In a lot of the deals made in the last couple of years the contracts they drew up have weak legal language that can bite them in the ass if pursued vigorously.
2) All their various "BofA tower" CRE projects were predicated on both RI & CRE holding together as a vertical one stop shop. Obviously that's not working out but it's TBD how bad it plays out for them.
"New York City's market is still tight- there's hardly any inventory because foreigners are snapping up luxury condos faster than we can build them. Crime and infrastructure problems (ok, well xcept for blackouts) are gone -- and because the entire city is one big co-op with an omniscient board, only those with spotless credit and huge savings are allowed to buy, so the market here will never go down! And if you think otherwise, try finding any mls data to the contrary (You won't be able to, because we hide it).
The problem with trying to be a vulture is that you can get dragged down into the vacuum of the credit vortex. Ask the Annaly Mortgage spinoff, Chimera Investments, ticker CIM, went public last year at $15, now down to $8, with a relatively well-regarded management. The problem is that their expertise was in mortgages, not distressed credits, and that problem persists today nationwide, not enough experienced vultures to get the job down, just mortgage people learning on the job at investor expense.
Takeaway: No upside in being a vulture until we hit bottom. Got carrion ?
Clyde: their stated intent is to focus on non-performing non-securitized loans. They say they will be modifying terms and servicing the loans themselves. They claim to be performing a great public service here, preventing foreclosures and supplying much needed liquidity.
Okeedoke. Maybe they're just another scam... attract billions in foreign money with the smell of death... the two big hedge fund backers then make a killing in fees regardless of how long it takes pennymac to fold up. Or something like that?
You nailed it, just a perpetual fee/golden parachute machine run by people not accountable to shareholders. That alone should tell people we are nowhere close to the bottom; at the bottom there will be some degree of accountability and responsibility meted out by the markets.
Mike Norman on FOX said the market's OK. I don't understand all this depressing talk, IndyMac is a market juggernaut!!! Now excuse me while I take a puff of this crack I have here......
all of the schumer critics should now crawl back into their holes. thankfully he called out the laxity by the ots and put the fdic on notice about the usuage of brokered deposits to prop up zombie institutions. normally, the fdic rubber stamps the approval for brokered deposit waivers; this one comes with much more political risk. also, notice how the announcement was timed to after quarter-end; hence, IMB will not be among the problem banks when the fdic issues the q2 report. what a shell game.
Alec-Thanks. I'm not ready to jump into buying the financials right now. I believe those that weather the storm will eventually have real opportunities in a landscape with fewer competitors. The problem is to figure out who and when. Mostly I'm going to stay with what I know (biotech/pharma) and cash.
This is the vicious circle. Those soon-to-be unemployed will have to sell their homes either because they can not pay the bills or have to move to annother place to find job.
This example illustrates that anyone can lose his or her home. Thus, I belive the Frank-Dodd bill must pass. This will help everybody. You do not know who is going to lose his or her home.
Montauk: Wow that's great! Now finally those poor folks in the Hamptons will have access to banking services instead of having to cash their checks at Lefty's Liquors.
OTS
Financial Reporting Bulletin http://www.ots.treas.gov/docs/7/78225.pdf
(The FDIC will post June 2008 data to their website for the first time on Friday, July 18, 2008.)
Servicing Retention channel means retail loan officers processing loans refinancing their existing loans. The original intent was trying to reduce your servicing runoff to refinances by the competition. Hard to say what is is now, but it would seem that it would be difficult to refinance a securitized loan if they have no bids for their new loans. Likewise, if they have little liquidity, why would they not want loans in their portfolio to payoff?
As to the question about IndyMac getting back to their roots as a thrift. They have no roots as a thrift. Their root is a spin-off from Countrywide to specialize in non-standard loans. They were a mortgage banker from the beginning. Then, like Countrywide, they chartered or acquired a thrift.
Way down here at the end of the thread, I remember Tanta once mentioning something to the effect that it was a bad idea to allow disgruntled employees anywhere near the files. So now Indymac has several thousand people who know they are losing their income and have little prospect of new jobs any time soon and they have all those files waiting to be copied...
And Chuck Schumers response was?
And Chris Dodds response was?
And what did OTS Director Reich
tell George W the man who
appointed the director to this
position?
Hey I feel a song coming on, a old favorite of many" Take this job and shove it"
Pop goes the weasel.
I just heard a shoe drop.
So is this Hank's test of the "Too Big to Fail Emergency Collapse System"?
But did they halt Middleman and Underground Lending, too?
I hope they get a nice package.
IndyFact
Why do you need 3800 people to service non performing loans?
but Perry's taking a 50% pay cut...from ludicrous to only mildly absurd!
what a saint
Since it's not an official BK I'd guess the CDS's -- if any -- are still OK...
Just the beginning, who's next in the banking merry-go-round.
jo6pac
The race to the bottom continues.
REbear:
This answers your question:
Unfortunately, the above actions will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3,400 or so over the next couple of months, which should reduce our operating expenses by roughly 60%.
Oops:
I very much regret that the reality today, however, is that we can no longer afford this program given our need to preserve capital and return to profitability. Therefore, we will be providing employees with a minimum 30-day notice of the termination of their employment (effectively, 30 days severance), with employees covered under the Federal WARN Act and similar state statutes (WARN) receiving 60 days of advance notice prior to the effective date of the their termination. Affected employees with five or more years of service will receive a minimum $20,000 severance, including any compensation payments made during the notice period.
Come on you guys. Can't you take IMBs word at face value? They are responding proactively to a changing market. This is good news. Don't mistake a medically necessary diet for starvation.
There are many job opportunities for 3rd shift copper wire gatherers ...
So is IndyMac essentially in "run-off" mode now?
Five or more years service, yul, yuk, wonder what percentage that amounts to with their recent growth rate.
Rob,
What do they mean by "servicing retention channel."?
I really do feel for the employees. I was laid off in a very similar fashion back in 2002.
Temporary measure until the FDIC can open the hood and kick the tires and scrounge for a shotgun and a groom.
I personally switched my money over to NASCARmac Bank about five years ago, because I was worried this might happen. A lot (and a growing number) of people like to drink beer and bank.
They are chopping more than 50% and they expect to survive?
BULL!!!!!!!!!!!
Reposting.
Fed study says home price drop 'necessary'
Error page - Yahoo! News
The study by economist William Emmons of the St. Louis Fed concluded that "government interventions directly in housing or mortgage markets are not necessarily the best policy responses."
So no more bailouts?
I blame Sarbannes-Oxley.
I wonder how many people out there will now feel certain regions of themselves pucker up about the prospects for their own bank...
This is F*(%'ed up. That means the policy makers like Schumer knew something big was up, WTF!?! Why did he open his big yap? What for?
Why did he open his big yap? What for?
Chopper One
I think he was mad. And stuff.
Reposting:
What's going on with Freddie and Fannie? Aren't they a bigger story than IndyMac? It looks like they'll have to be bailed out soon--of course, by you and me!
WaitingInOC writes:
So is IndyMac essentially in "run-off" mode now?
I think they'll be doing what CFC does now - originate conforming balance loans to be sold to GSEs
now what happens when the GSEs raise rates / stop securitizing...that's another story
IndyMac: regulators say company no longer well capitalized
624 visitors online.
inflation, again...
And another one slips beneath the waves. Those icebergs sure do pack a punch when you run into them... over and over... durr!
So, which lender is next on the death watch list! Sure feeling confident about Fannie and Freddie... right...
What do they mean by "servicing retention channel."?
Keeping the loans they have and keeping them performing. The servicing channel has been covered extensively in Tanta's UberPosts. Like CFC and BAC this is one of the jewels.
IMB, well that's a suprise. I'm shocked! Shocked!
Cheers,
This is priceless. From the indymac letter
:
Words such as anticipate, believe, estimate, expect, project, plan, forecast, intend, goal, target, and similar expressions, as well as future or conditional verbs, such as will, would, should, could, or may, identify forward-looking statements that are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified.
Obviously, it's the words' fault.
Does this put them at risk for a Moody's and S&P downgrade them, now?
Some of this stuff is pretty awful really.
A lot of these people are probably in the same boat as the dot.commers in 2001 -- they could be looking 3 years+ of unemployment.
I remember college graduates in technical fields offering to work for free just to get industry experience for a brief time there (usually they'd get some sort of paying job just for demonstrating that much interest in doing real work).
I wonder if finance and economics students are headed for the same boat.
Sometimes it's easy to forget there are relatively innocent victims out there...
Does anyone recall a few months back when they had that big funding day and all the perma-bulls were calling a bottom...
No major news site carrying this news??
as I posted on the other thread ...
a Southern California retail bank branch network, including 33 branches and roughly $18 billion in deposits, of which over 96% is fully covered by FDIC insurance
Nice to see that IMB is depending on FDIC to backstop them to the tune of $17.3B
Marketwatch has numerous headlines on this.
As of 4:30, I didn't see anything on NYTimes, WSJ, or moneycenral.msn.com
I thought they (like CFC) had already decided to just focus on originating GSE loans. They can't even make money doing that??!!. This does not bode well for the housing market.
I wonder if this will encourage others to come out of the closet.
Bloom TV just covered it. But not much.
Cheers,
Interesting Times writes:
No major news site carrying this news??
Interesting indeed.
The study by economist William Emmons of the St. Louis Fed concluded that "government interventions directly in housing or mortgage markets are not necessarily the best policy responses."
Officials in China were making this same argument about their stock market not long ago.
Is the US finally deciding to follow in the footsteps of China and take a chance at free-market capitalism?
I've fallen down and I can't get recapitalized.
And another one down, another one down, another one bites the dust.
Three plus years of unemployment? At least.
If we follow the same rate of income decline and household debt write-downs as happened over '29-'39, to get to a normal household debt-to-income ratio, the downleg will be five years. And, I would guess that the upleg will be tenuous and rickety, as it was over '34-'39.
Sad but true. I feel for the workerbees.
Shitty system, this Central Bank/cheap and easy credit crap. May it blow up soon and be gone forever.
ac writes:
Is the US finally deciding to follow in the footsteps of China and take a chance at free-market capitalism?
Dare the US... it would be a good first step.
Interesting Times,
Thanks! I think the previous bunch got a better deal.
NEXT!
Wamu?
Wachovia?
Ministry of Truth requests that all references to IndyMac herefore be strucken from the record. They never existed, therefore they never failed.
Payments for existing (formerly IMB) loans shall be made out to Big Brother.
IndyMac CEO Perry asks board to cut his salary by 50%... since they're reducing overall expenses by 60% by reducing headcount, shouldn't his loss be quite a bit larger? Never mind the likely "parachute" sitting somewhere in the wings for him.
I'm feeling quite underwhelmed by his generosity!
Shouldn't his compensation be reduced to zero? As in, terminated?
Wachovia is the logical next I'm thinking. But would the Fed let them sink slowly in the night or go for another save-the-ship ploy?
What Benny Boy is going to do now?
Larry Silverstein (WTC Hero) says Lower Manhattan commercial re is doin' just fine! He says he hasn't seen rent drop much, but when he talked about future rents his eyes started to convulse.
I wonder if finance and economics students are headed for the same boat.
Sometimes it's easy to forget there are relatively innocent victims out there...
ac
"Victims" is a funny word. And used in funny situations, too.
I prefer to call the students who can't get jobs "unmotivated" and "underperforming" at school or in job searches.
The good thing about job losses is it spurs innovation and entrepreneurialship. During tough times, Darwinism is toughest. Sometimes, it is a bummer to be the weakest.
I hope we will see some VPs and CEOs in prison.
I'm calling a bottom for salad shooters and toaster ovens and inexpensive desk calendars.
With IMB withdrawing from most new loan production, how much of a squeeze does that put on buyers looking for mortgage funding ?
Is this primarily a So-Cal effect, or nationwide ?
Home Prices Fall in 23 of 25 U.S. Metropolitan Areas
Home Prices Fall in 23 of 25 U.S. Metropolitan Areas (Update1) - Bloomberg.com
Prices are going down so fast they can't go down much longer,'' said Christopher Thornberg, president of Beacon Economics LLC in Los Angeles, who predicts a total decline of 30 percent nationally in the housing recession.We've never seen prices fall like this.''
Can't go down much longer? So he says.
IndyMac: No loan submissions, downward trends, jeebus we're in a pickle, & shrinking assets on a sesame seed bun.
I can imagine that once the big commercial defaults start to hit fannie is going to need another $100 Billion.
The competition in the job market is going to be incredible. Most of these people being laid off from all these banks and mortgage companies will have similar looking resumes.
And let's not forget that many (if not most) own homes. Add those homes to the inventory lists. Which will further hurt the banks and bring another set of writedowns and layoffs.
This negative loop is making me very very dizzy.
Elvis, you and Hitler... great minds think alike.
I bet most of the layoffs will be from the Pasadena HQ. Not good for this "posh" community
Ray,
"With IMB withdrawing from most new loan production, how much of a squeeze does that put on buyers looking for mortgage funding ?"
How do they continue to pay interest on deposits?
Cheers,
getting the shaft
[Our severance program, which provided one month of pay and one month of Indymac-paid COBRA insurance coverage for each year of service, was clearly the most generous in the mortgage industry, if not among most of the Fortune 500. I very much regret that the reality today, however, is that we can no longer afford this program given our need to preserve capital and return to profitability.]
``Prices are going down so fast they can't go down much longer,'' said Christopher Thornberg, president of Beacon Economics LLC in Los Angeles.
Didn't I see this guy at the dog track picking up other peoples' scratch tickets?
The other thing is that these newly unemployed are going to find that generally they are in line for some severe pay cuts should they run into something.
C'mon Ben, you still have 8 more bullets left. What the hell, empty your gun. hahahaha
I sure hope the Fed doen't have to cash in it's Coke bottles, to back up Fanny and Freddy!!!!
Can IndyMac unilaterally stop COBRA for people they lay off in the next few weeks?
doom,
Yes, my belief is the areas that had large mortgage and banking centers (ie workers with access to easy money and easy loan qualifications for home buying) will see the worst home price declines (except possibly NYC). Crushed employment compounded by silly loans equals inescapable trouble.
As a result of the above, we have made the difficult decision,
effective July 7, 2008, that we will no longer accept any new loan
submissions or rate locks in our retail and wholesale forward mortgage
lending channels, except for our servicing retention channel
WHERE IS THE SEC?
The CEO was on teevee last week claiming this was not going to happen??
Hey, time for "strong dollar" and "concerned about inflation" speech.
Billy - Clearly we are seeing a bottom here.
"Prices are going down so fast they can't go down much longer."
You keep using that word. I do not think it means what you think it means.
A lot of these people drank the Kool-Aide heavily. There in debt up to their eyeballs, and saved nothing. I know a few.
Not gonna be pleasant.
Cheers,
Elvis,
Why except NYC? I'm right across the river and I can smell the fear from here. Oh wait, I'm sorry that's New Jersey.
But anyway, lot's of jobs being lost in finances around here. I think it's only a matter of time.
Will this change peoples ability to borrow, or with new tighter lending standards making it more difficult in general, make no difference.
The obvious point is there is capacity lending institutions to take up the slack.
My < 100k Countrywide CD is coming due and I plan to open one with IMB. Best rates around, FDIC insured. Why not? FDIC may be insolvent, but IT must be to big to fail. I already got the shotgun and canned goods ready...what the hell, I'll take a chance on a slightly less negative real return.
AAI] AirTran Airways to cut 480 jobs: report
Last one out of America turn off the lights
"A lot of these people drank the Kool-Aide heavily. There in debt up to their eyeballs, and saved nothing. I know a few."
Yup... same in these parts.
doom,
My instincts say it will get hurt, but I don't think it will get crushed to the extent of places like Orange County will. However, I did include the word possibly, because I am not completely confident NYC won't be crushed.
NYers just know how to blow smoke better. The hurt is on here.
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
HEAR YE! HEAR YE! The Stock markets are
headed for capitulation this week. Prepare for a huge fall that can't be
supported by any more manipulation.
Evidence this from :
--continued selling into any rises
--more terrible economic news
--more troubles reported by big financial and housing concerns.
Dow below 10k.
Hey, many of you guys here are really smart (I mean it, seriously). Why don't you start your own bank? I bet investors would rather pony up for a brand new bank with a pristine balance sheet than to sink more capital into the rat-holes that are out there now. Come on, somebody, anybody...
fred - look up deflation.
There is some crafty double-speak in this paragraph that is bound to PO IMB employees.
"Therefore, we will be providing employees with a minimum 30-day notice of the termination of their employment (effectively, 30 days severance), with employees covered under the Federal WARN Act and similar state statutes (WARN) receiving 60 days of advance notice prior to the effective date of the their termination. Affected employees with five or more years of service will receive a minimum $20,000 severance, including any compensation payments made during the notice period."
Usually, severance is pay made after termination of employment, not the pay you receive in your last 30 or 60 days of employment. Unless you have 5 or more years of pay, and earn more than $10,000 per month, it looks like there is zero real severance -- good-faith payments made at termination of employment.
Will IMB actually make POed employees come to work for 60 days and sit at their desks to collect "severance?" Not too smart.
Notice also that they've terminated paid COBRA coerage health benefits worth potentially thousands of dollars (for long-time employees) with ZERO NOTICE. Their health plan better explicitly say they have this option.
How long before people have to stop spending, deflation, and depression? Any guesses, or predictions?
I don't understand after hours trading.
IMB After Hours: 0.6711 Down -9.31%
So shmoes can't bail until tomorrow, after all the after-hours trading sends it down 25 percent?
aoc - what happened, you said green and we went RED
Ahead: that's so funny. I was just thinking about the barriers to entry in starting a new bank.
don't you start your own bank?
Too much paperwork.
elvis,
I love job losses too... They male people do crazy things like vote democrat!
I think Indymac should start selling Forever Stamps exclusively. There's got to be a way to turn those in CDO's.
fried writes:
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
Oil and oversupply of soft commodities.
666 online...somebody leave, please!!
crispy-I was green; I've told you again and again, I don't really care about the averages, other than for entertainment.
With more than 600 people on this site, I am sensing a short term rebound. Might long some stocks in a few days.
Just make sure that you ask for your interest to be paid out monthly, not reinvested. Reinvested interest in excess of 100k will not be covered when FDIC announces takeover of IMB bank by another institution, shortly.
666 online. Jas must be lurking.
Aheadofthecurve writes:
Hey, many of you guys here are really smart (I mean it, seriously). Why don't you start your own bank? I bet investors would rather pony up for a brand new bank with a pristine balance sheet than to sink more capital into the rat-holes that are out there now. Come on, somebody, anybody...
Aheadofthecurve | 07.07.08 - 5:04 pm | #
It's easier to pick at the carcases of the dead and dying banks than start a new one.
Heh! Some guy named Dorfman just said market rebound and recession over in October.
Um...OK.
Cheers,
"Perry said IndyMac has complied with orders from regulators to submit a new business plan to improve its capital levels."
This time, no lending to spider monkeys nor invertebrates.
Last one out of America turn off the lights
crispy&cole | Homepage | 07.07.08 - 5:01 pm |
And take down the flag as well, please !
Speed,
"a new business plan to improve its capital levels."
Interesting, that. At $0.60/share, that's gonna be a hellava lot of paper. Go long paper mills.
Cheers,
666 online.
And SKF up 6.66%
0_0
I don't understand this talk about no bid for mortgage loans and fire selling. Why don't they just use the same valuation construct the Fed used to value their BSC mortgage-backed paper?
lol @ "Dorfman"
http://articles.lancasteronline.com/local/4/223933
I hope we will see some VPs and CEOs in prison.
Speed | 07.07.08 - 4:51 pm | #
Check the above link. On one level, I feel sorry for the guy since he's 78. Flip side, he can't argue that he didn't know better...
I love job losses too... They male people do crazy things like vote democrat!
badger boy | 07.07.08 - 5:05 pm | #
That is crazy!
Of more interest perhaps is ABK touting it's new insurer Connie Lee to be funded with $850M from its current insurer.
Question for anyone...what caused the commodities to tank? i saw that oil stepped down..did it take the rest with it? I'm just trying to follow the action here, appreciate any info. Thanks.
Well some of the crazier types here have suggested that commodities are just another bubble that are masking the onset of outright deflation.
This kind of bolsters their case, but hopefully it's temporary and doesn't get them back out of their caves.
BB @5:10 -
Remind me to deep six the alumni contribution letter to W&L.
You buys your tickets, you takes your chances.
What happens to all the Dum Dums? Are they part of the severence package or will they be auctioned off at a later date? If so, will it be by flavor, so I can bid on the Mysterys?
Some points on the size of IndyMac that I think are worth noting ...
And a last bit of food for thought: So far, New Century Financial was one of the biggest mortgage companies to collapse/stop lending as part of the mortgage crisis. It originated $59.8 billion in mortgage loans in its last full year of production (2006). So if IMB is truly shutting down almost all forward loan originations, you're losing an originator that made 29% more loans than the biggest independent to fold up shop so far. American Home Mortgage was about the same size as New Century, origination-wise, with $58.9 billion for 2006.
"So shmoes can't bail until tomorrow, after all the after-hours trading sends it down 25 percent?"
That's life. Note to self: next time you hear a U.S. Senator hint about a company, run like hell.
After reading the press release and perusing the 10-K, it reads like IndyMac is getting out of the mortgage banking business and returning to its roots as a thrift, save for the reverse mortgage division.
The FDIC is trying to protect the deposits and the mortgage banking division is (now) a drag on profits and capital.
Some good news: Stanford Kurland's "PennyMac" leased 27,000 sq. ft. in Calabasas last month. I guess he's thinking that they're going to be busy (buying up distressed debt).
Indymac down. Freddie Mac down. PennyMac rising. Anyone know who's invested in Pennymac?
After reading the press release and perusing the 10-K, it reads like IndyMac is getting out of the mortgage banking business and returning to its roots as a thrift
And changing their name to the Bailey Savings and Loan.
Some good news: Stanford Kurland's "PennyMac" leased 27,000 sq. ft. in Calabasas last month.
Uncle William
Must be subleasing Ryland's vacated space.
ac,
"but hopefully it's temporary and doesn't get them back out of their caves."
Rolled a boulder in front of it yesterday. I plan on leaving it there for a while.
Cheers,
Elvis,
The ammount of empty commercial in the area is quite stunning. Own-it mortgage had a huge building. Still empty.
Cheers,
Efficiency will drive the markets for the next 10 years and belts will be tight!
LancasterOnline.com:News:Snyder faces future in jail
I tried to drum up some sympathy for the guy. He is wearing a suit and tie after all. But then I read about how he destroyed dozens of his victims - people who will never recover.
Can IndyMac unilaterally stop COBRA for people they lay off in the next few weeks?
Unless the law has changed since the last time I checked, the COBRA law just means you can stay on the company's group medical plan for two years after termination--at your own expense. You pay the full premium, which is a lot of money for family coverage. (It would likely be even more if you got a policy all by yourself, with no group rate, and if you or a family member has a medical issue, you probably can't get individual coverage at all, so that's what COBRA does for you.) Some companies have given their severed employees PAID cobra benefits, meaning the company still covers its share of the premiums for some specified period. IndyMac apparently is not in a position to shoulder that expense for several thousand ex-employees.
Curiously, the FHLB is into IndyMac for $10.4 billion.
I know the FHLB is not FDIC insured; rather, the FHLB accepts as collateral SFR mortgage loans as well as agency and AAA rated MBS!
Now call me skeptical, but how solid are those AAA MBS these days...
Ambac news just flashed. Missed it. Wasn't good.
Cheers,
Misean, I was there recently. Nice place with some duressed major employers. I was hoping to see Denise Richards at the grocery store. Didn't happen, but that bald dude from Deal or No Deal was lurking in a bar.
So Schumer was right about the problems at IndyMac and right about warning us there was a problem.
A little honesty is refreshing.
"and securities or the bid/ask spreads are abnormally wide, ..."
Sounds like real estate in general.
I think if there is a need to sell, then ask is too high, so bid becomes the real price. If the assets are profitable, then there's no need to sell and the seller can wait for bids to come up and meet ask.
This nonsense about the mortgage bonds being underpriced relative to their value is just that - nonsense. If they were such a good deal then Indymac and other lenders can just hold on to them for lots of profits.
Nobody had a problem pricing to market when market was zooming. But now that nobody wants that crap everyone wants to value stuff against some imaginary "nostalgic" sense of appropriate price. Foolishness, I say.
A little honesty is refreshing.
Paul
Except when you aren't supposed to tell. Then it is political bullsh&&.
The next thing bear markets like this can do is take away your choices, by dropping so hard so fast that you won't even think about playing a bounce, and then being too low to short.
So I'm going to sell any weak opening. Be proactive.
"It's easier to pick at the carcases of the dead and dying banks than start a new one.
Dean | 07.07.08 - 5:10 pm | # "
Unless you believe banks will not exist in 10 years than the real payoff will be in either:
(1) Identifying those existing banks that will survive and thrive as their competitors fold, or
(2) Getting in on the ground floor with new banks.
Elvis,
You should have gone to the Chili's down the road a piece. Jessica Simpson likes the place. Not much between the ears, but she's damned easy on the eyes.
Cheers,
ZERO!
Ahead,
(2) For homebuilders.
Paul,
I don't think anybody doubted that he was right; however, it is considered poor form to tell the masses before the insiders have all cleared their positions. It violates the club rules. The man was a snake for letting the public see the gears grinding.
OT: Sacramento's 'Blueprint' for Growth
Draws National Attention
The Future of Real Estate
In the spring, the regional-planning agency's board took another major step by approving a $42 billion transportation plan designed to mesh with the Blueprint. Together, both are projected by 2035 to reduce the amount of driving per household by 8% and global-warming emissions per household by 12% from their 2005 levels.
Now, California's Transportation Department is offering grants to help other areas in the state create their own Blueprints.
Elvis, I agree for homebuilders. maybe for banks too, but there have to be some in (1)
IMB deposits are 18bn, and are 96% FDIC insured. Sounds good until you do the math - that's 720 million of individual depositors' money that's at risk of disappearing. Not good.
-Jaso
Yes yes, my good man, quite right, old Wally.
Troubled bargain airline trims payroll by 5%, handing pink slips to 180 pilots, 300 flight attendants by Sept. 6.
Jessica Simpson likes the place. Not much between the ears, but she's damned easy on the eyes.
Cheers,
Misean
I think her and Romo are on the rocks. Time for you to make your move. I recommend the following line:
"Don't I know you from Calculated Risk?"
If indymac is a leader in severance packages the this country is well and truly hosed.
If you were one of the gang of four and were let go today, you'd get 15 months severance. lucent routinely offered more during divestitures and most folks kept their jobs on top of it.
Mike_in_Fl | Homepage | 07.07.08 - 5:20 pm | #
OK, so even beyond the investors and the employees of IMB, this is a significant hit for future borrowers. The disablement of one more large lender may put (more) pressure on the ability of a typical borrower to find mortgage funding.
Could this deflate home prices ever more ?
Unless you believe banks will not exist in 10 years than the real payoff will be in either:
(1) Identifying those existing banks that will survive and thrive as their competitors fold, or
(2) Getting in on the ground floor with new banks.
Aheadofthecurve | 07.07.08 - 5:35 pm
So while I watch what's happening, I review financials by fully reviewing the FDIC statements online.
Kept me from moving to a much unhealthier bank.
anyone know what happens with properties that indymac has, i'm bidding on a shortsale that indymac owns and hoping it doesn't delay it forever.
Wamu?
Wachovia?
Have we all forgotten about Downy Savings? Here's the latest news:
Newport Beach-based Downey Financial Corp. said President Frederic McGill left after eight months with the savings and loan operator. McGill was Downeys third president in less than four years. Downey, which doesnt hold conference calls or offer other insights into its inner workings, appeared to have been grooming McGill as a potential successor to Chief Executive Dan Rosenthal. In recent months, McGill, not Rosenthal, had been providing comments for Downeys quarterly financial results. The company didnt say why McGill left. Bad home loans made by Downey have led to its stock dropping more than 90% in the past year. It holds a recent market value of $75 million with assets of about $13 billion
"Don't I know you from Calculated Risk?"
lmfao!!!!
Elvis,
Good one.
Cheers,
How much of IndyMac is already parked at The Fed Discount Window?
Answer to question about "PennyMac" backers: Blackrock and "Highfields Capital". Highfields Capital is interesting. Some folks that spun out of the Harvard Management Company. Blackrock, I imagine has plenty of access to global capital, and it looks like Highfields does too:
"Both BlackRock and Highfields will serve as strategic partners, enhancing PennyMac's relationships with global financial institutions and providing valuable input in structuring PennyMac's investment management activities."
woot
we are pwned
"Have we all forgotten about Downy Savings?"
Orange County is an interesting place, the people are unusual in a Good way!!!!
I wonder what sort of unprecidented bailout has been worked out???
Fed, SEC team up to prevent financial risks
The article requested is no longer available.
The two agencies will, among other things, share information on banks' and investment firms' cash and trading positions, proportion of debt to capital, financing resources and risk-management systems.
Re: Bear Stearns too interconnected to fail, Fed says
Fed believed Bear Stearns was too interconnected to fail - MarketWatch
Action was required the weekend of March 15 because Bear Stearns "would have difficulty meeting its repayment obligations" once trading began in Asia on March 17, the summary said.
In addition, the Fed also waived certain capital requirements for J.P. Morgan Chase to smooth the takeover, the summary said.
As part of that merger, the Fed eventually agreed to lend almost $29 billion to finance the takeover.
"NYers just know how to blow smoke better..."
No way! L.A. is king in that dept. You see, there is no big problem with housing here, and the economy is strong and diverse. Plus, everyone wants to live here. Well, west of Western and north of the 10 anyway. Seriously, just ask any realtor. They'll set ya straight!
the people are unusual in a Good way!!!!
They must have missed the part where DSL had 14.3% non-performing assets at the end of May. I guess all the women are good looking too, thanks in part to HELOC-funded plastic surgery. Those OC women are at least 14.3% silicone these days.
OneWest Bank
Quick, follow that link and follow the mortgage links! They'll be gone soon, hope someones archiving this stuff. Ya know... for the kids...
AOTC,
for category 1 I've been nominating BofA & JPM for some time(and even bought some in April for a little profit before I got stopped out).
As the only two banks(that I know of) that have Check 21 certification and scale they will always have better cash situations than any other bank, even when they screw up. My understading is that check 21 approval is a bitch.
BoA's hidden issues are these:
1) In a lot of the deals made in the last couple of years the contracts they drew up have weak legal language that can bite them in the ass if pursued vigorously.
2) All their various "BofA tower" CRE projects were predicated on both RI & CRE holding together as a vertical one stop shop. Obviously that's not working out but it's TBD how bad it plays out for them.
Alec | 07.07.08 - 5:39 pm | #
I was part of the early nineties layoffs. Didn't get shit for severance.
You white collar guys need to get out a little more and join the real world...
Chris
So, basically, they are out of the business for which they are in business.
Next on my wishlist for extinction -- WaMu, BofA & WellsFargo.
I wonder how many open warehouse lines they had.
Cobradriver,
If I was cut on a salaried job and got no severance, I'd firebomb the place like any good communist.
"You white collar guys need to get out a little more and join the real world..."
Now, many will get their chance.
I'll see you JBR and raise you a:
"New York City's market is still tight- there's hardly any inventory because foreigners are snapping up luxury condos faster than we can build them. Crime and infrastructure problems (ok, well xcept for blackouts) are gone -- and because the entire city is one big co-op with an omniscient board, only those with spotless credit and huge savings are allowed to buy, so the market here will never go down! And if you think otherwise, try finding any mls data to the contrary (You won't be able to, because we hide it).
Uncle Billy,
The problem with trying to be a vulture is that you can get dragged down into the vacuum of the credit vortex. Ask the Annaly Mortgage spinoff, Chimera Investments, ticker CIM, went public last year at $15, now down to $8, with a relatively well-regarded management. The problem is that their expertise was in mortgages, not distressed credits, and that problem persists today nationwide, not enough experienced vultures to get the job down, just mortgage people learning on the job at investor expense.
Takeaway: No upside in being a vulture until we hit bottom. Got carrion ?
Clyde: their stated intent is to focus on non-performing non-securitized loans. They say they will be modifying terms and servicing the loans themselves. They claim to be performing a great public service here, preventing foreclosures and supplying much needed liquidity.
Okeedoke. Maybe they're just another scam... attract billions in foreign money with the smell of death... the two big hedge fund backers then make a killing in fees regardless of how long it takes pennymac to fold up. Or something like that?
Why do you need 3800 people to service non performing loans? Because "servicing specialist" sounds better than "forclosing specialist."
Aliens checking out buying new digs for cheap?
"Whatever the explanation, experts agree that the number of suspected flying saucers has hit unusual highs this summer.
Malcolm Robinson, who studies the phenomenon, said: "Something very bizarre is happening in the skies over the UK."
British UFO sightings at 'bizarre' levels - Telegraph
Cheers,
You nailed it, just a perpetual fee/golden parachute machine run by people not accountable to shareholders. That alone should tell people we are nowhere close to the bottom; at the bottom there will be some degree of accountability and responsibility meted out by the markets.
"With more than 600 people on this site, I am sensing a short term rebound. Might long some stocks in a few days."
With so many of you onto the CR visitor reverse indictor, it can no longer work.
One step ahead of the rest.
okay okay okay....we're concerned about the dollar, and we believe in strong inflation......see, I don't even need a teleprompter anymore....
BTW- IndyMac is just fine. It is merely restructing and that kind of news isn't picked up by the MSM because its too wonky and boring.
"I'd firebomb the place like any good communist.
Alec"
Sounds like a poor loser capitalist act to me. Maybe you should believe less propaganda.
On bloomberg :-
IndyMac Cuts Half its Staff as Mortgage Losses Mount
IndyMac Cuts Half its Staff as Mortgage Losses Mount (Update3) - Bloomberg.com
IndyMac rose 4 cents to 71 cents at 4 p.m. New York time. The stock has lost 98 percent of its value in the past year.
THIS IS CRAZY!!!
Mike Norman on FOX said the market's OK. I don't understand all this depressing talk, IndyMac is a market juggernaut!!! Now excuse me while I take a puff of this crack I have here......
Crime and infrastructure problems (ok, well xcept for blackouts) are gone
No, the drug runners have just moved update. Thanks a fucking lot, Giuliani.
Make that "UPSTATE" not "UPDATE"
all of the schumer critics should now crawl back into their holes. thankfully he called out the laxity by the ots and put the fdic on notice about the usuage of brokered deposits to prop up zombie institutions. normally, the fdic rubber stamps the approval for brokered deposit waivers; this one comes with much more political risk. also, notice how the announcement was timed to after quarter-end; hence, IMB will not be among the problem banks when the fdic issues the q2 report. what a shell game.
Alec-Thanks. I'm not ready to jump into buying the financials right now. I believe those that weather the storm will eventually have real opportunities in a landscape with fewer competitors. The problem is to figure out who and when. Mostly I'm going to stay with what I know (biotech/pharma) and cash.
This is the vicious circle. Those soon-to-be unemployed will have to sell their homes either because they can not pay the bills or have to move to annother place to find job.
This example illustrates that anyone can lose his or her home. Thus, I belive the Frank-Dodd bill must pass. This will help everybody. You do not know who is going to lose his or her home.
Their not UFO's, just Rosie trying to hanglide.
`Prices are going down so fast they can't go down much longer,''
LOL. I mean really. Just wait until oil hits $200/barrel when Israel hits Iran around election day. Then you'll know the true meaning of overshoot.
Why don't you start your own bank?
OK:
Sorry. Page not found.
Montauk: Wow that's great! Now finally those poor folks in the Hamptons will have access to banking services instead of having to cash their checks at Lefty's Liquors.
OTS
Financial Reporting Bulletin
http://www.ots.treas.gov/docs/7/78225.pdf
(The FDIC will post June 2008 data to their website for the first time on Friday, July 18, 2008.)
Senator Schumer called and wants to know how to spell WAMU...
Senator Charles E. Schumer
Servicing Retention channel means retail loan officers processing loans refinancing their existing loans. The original intent was trying to reduce your servicing runoff to refinances by the competition. Hard to say what is is now, but it would seem that it would be difficult to refinance a securitized loan if they have no bids for their new loans. Likewise, if they have little liquidity, why would they not want loans in their portfolio to payoff?
As to the question about IndyMac getting back to their roots as a thrift. They have no roots as a thrift. Their root is a spin-off from Countrywide to specialize in non-standard loans. They were a mortgage banker from the beginning. Then, like Countrywide, they chartered or acquired a thrift.
They're history.
They're history.
GP
A sweet romatic history, too. Perhaps like the Black Plague or the Toyko Fire Bombings.
Way down here at the end of the thread, I remember Tanta once mentioning something to the effect that it was a bad idea to allow disgruntled employees anywhere near the files. So now Indymac has several thousand people who know they are losing their income and have little prospect of new jobs any time soon and they have all those files waiting to be copied...
after arriving at indymacs home page...then click on home mortgages:
Server not found
Firefox can't find the server at IndyMac Bank Home Lending
* Check the address for typing errors such as
ww.example.com instead of
Example Web Page
* If you are unable to load any pages, check your computer's network
connection.
* If your computer or network is protected by a firewall or proxy, make sure
that Firefox is permitted to access the Web.
And Chuck Schumers response was?
And Chris Dodds response was?
And what did OTS Director Reich
tell George W the man who
appointed the director to this
position?
Hey I feel a song coming on, a old favorite of many" Take this job and shove it"
I have found lots of high paying jobs on employment sites -
http://www.realmatch.com
Job Search | one search. all jobs. Indeed
Job Search Made Simple | Simply Hired
There are some $100 and $200K jobs posted on these sites!