Saturday, July 12, 2008

IndyMac Bank fails

I think the answer to yesterdays questions....

Is it safe to come out yet ? The answer unfortunately is no.

Today I see that the Fed has taken over IndyMac Bank, the troubled bank has been taking steps to address their issue's, firing more then half its staff and closing most of their lending operations. This obviously was not enough as more then 1.3 billion dollars has been taken out of the bank in recent weeks my depositors fearful that the bank would not survive.

Some, such as John Reich director of the office of Trift Supervision blame Sen Charles Schumer for the failure:

The director of the Office of Thrift Supervision, John Reich, blamed IndyMac's failure on comments made in late June by Sen. Charles Schumer (D., N.Y.), who sent a letter to the regulator raising concerns about the bank's solvency. In the following 11 days, spooked depositors withdrew a total of $1.3 billion. Mr. Reich said Sen. Schumer gave the bank a "heart attack."

Maybe, maybe not...its seems the problems were there to begin with. for now banking regulators are bracing for more failures over the coming months as the housing market still has not stabilized.




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