"(AP) IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures." ( they forgot to mention lousy decision making. OOOPS!!! did I say that out loud...)
The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.
Shares of Fannie and Freddie dropped to 17-year lows before the stocks recovered somewhat. Wall Street is growing more convinced that the government will have to bail out the country's biggest mortgage financiers, whose failure could deal a tremendous blow to the already staggering economy.
"The FDIC estimated that its takeover of IndyMac would cost between $4 billion and $8 billion." ( that's a whole lot of 0's. )
"IndyMac spent the last two weeks trying to reassure customers that it was not near default."
I just love it when corporations lie right to your face, right before they slam the door in it. I can't count how many times I've heard the same song and dance from every lender right before they close there doors. There goes more of our tax dollars to bail out another corporation whos greed out weighed their common sence. I guess some peoples moral compass only points in the direction of their wallet. So Sad...
Jay @ Coastal Funding Corporation
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