Financial Crisis Is Still Here! IndyMac Goes Down
It's always easier to ignore the hard things in life. We have already begrudgingly gotten used to gas prices that are over $4 a gallon and normal families losing their homes to foreclosure. Whenever a big event like a big bank goes down then it makes us notice once again that the economy is still really hurting.
IndyMac once one of the largest lenders in America was taken over by federal regulators. This thrift bank grew big during the recent real estate boom and specialized in Alt-A no doc or low doc loans. As the real estate meltdown unraveled, so did its loans.
Even with assests of $32 billion and $19 billion in deposits, it still failed. It is the largest collapse of a FDIC insured bank since 1984. When IndyMac revealed its second quarter loss then all of the losses from last year and this year added up to where the regulators no longer felt that it was "well capitalized". IndyMac then found themselves no longer able to accept brokered deposits nor short-term high return CDs. A few days later it was taken over by the regulators.
This ever downward spiraling financial nightmare should be keeping you up at nights devising ways to create new streams of revenue. The worst is not over. Hang on tight and get really smart with your money.
IndyMac once one of the largest lenders in America was taken over by federal regulators. This thrift bank grew big during the recent real estate boom and specialized in Alt-A no doc or low doc loans. As the real estate meltdown unraveled, so did its loans.
Even with assests of $32 billion and $19 billion in deposits, it still failed. It is the largest collapse of a FDIC insured bank since 1984. When IndyMac revealed its second quarter loss then all of the losses from last year and this year added up to where the regulators no longer felt that it was "well capitalized". IndyMac then found themselves no longer able to accept brokered deposits nor short-term high return CDs. A few days later it was taken over by the regulators.
This ever downward spiraling financial nightmare should be keeping you up at nights devising ways to create new streams of revenue. The worst is not over. Hang on tight and get really smart with your money.
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