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US Bank Collapsed .............


Maxus-MIFA9
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Reported in CNA : US federal regulators seize control of IndyMac Bank

Posted: 12 July 2008 1013 hrs

 

LOS ANGELES: Federal regulators said they had taken control of the troubled California-based IndyMac Bank on Friday in one of the biggest bank closures in US history.

 

The regulatory Office of Thrift Supervision said it had placed the Pasadena-headquartered bank, worth an estimated 32 billion dollars, under the control of the Federal Deposit Insurance Group.

 

The bank will re-open next Monday as the IndyMac Federal Bank, the Office of Thrift Supervision (OTS) said in a statement.

 

OTS regulators said the closure was prompted by withdrawals of 1.3 billion dollars made by the bank's customers since June, when doubts were raised publicly about the institution's long-term viability.

 

"The institution failed today due to a liquidity crisis," OTS director John Reich said Friday.

 

The decision had been anticipated after IndyMac's share price collapsed. The company announced this week it had halting lending and was planning to shed 3,800 jobs, more than half of its work force.

 

At its peak in 2006, the company, which had been reeling under the foreclosure crisis, employed 10,000 people. The latest lay-offs would have reduced the work force to around 3,400.

 

IndyMac bank had been sent into freefall after comments by Democratic Senator Charles Schumer last month concerning the bank's health prompted a flood of customer withdrawals.

 

"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 OTS said in a statement.

 

Reports said IndyMac's collapse was the second biggest in US history behind the 1984 failure of the 40-billion-dollar Continental Illinois Bank.

 

 

 

[sweatdrop][sweatdrop][sweatdrop], as reported in today Sunday Times : for US$100,000/- u are safe to withdraw from Monday morning but those with more then US$100,000/-......... only part off could be withdrawn..... [sly][sly][sly]

 

 

err..... do u think Temasek will be interested in IndyMac's bank just like UBS.... [sweatdrop][sweatdrop][sweatdrop]

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bad risk/exposure management by the banks. U can't simply put all your eggs in the same baskets. Same case as the UK bank northern rock when they decided focus solely on mortgages.

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no pity for these pariah who r fleecing off high loans.

 

peasants sud not b made to pay the price for their mistakes.

 

honest or not.

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true... but sad to say, when a bank collapse, depositors/customers are always the last in priority when it comes to the liquidation. [shakehead]

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when ever did depositors and customers become 1st priority?

 

u r living in 1040s.

 

now those pariah Jews r so skewed mentally, their prority is fattening their own pocket, shareholder 2nd.

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Turbocharged

to minimise the risk, spread your emergency funds amongst a few banks.. at least $20k is guaranteed..

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it's safer under ur pillow and the booster betw ur legs

 

well, at least u get to screw with ur own cash then let some1 else screw ard with ur cash.

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Well, tomorrow let see how STI will react to the closure of IndyMac bank..... [sweatdrop][sweatdrop][sweatdrop]

 

it should shake the world markets tomorrow starting with Japan who open trading first.... [:/][:/][:/]

 

if STI drop above 100 points....... investers sure sweat leow....... [dizzy][dizzy][dizzy]

 

Citibank almost gone burst...... follow by UBS and now...... [:|][:|][:|]

 

Tom-ma-sek to the rescue by dumping billions into it ????????????? [thumbsdown][thumbsdown][thumbsdown]

 

 

OMG....... fuel price.... [sweatdrop][sweatdrop]

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UBS still got 1 more quater to leeport and write off bad debt. sud b ard US$20 bln i think.

 

not sure abt Sh1tty bang. but fr their exposure to easy credit, they will b equally hit bad.

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