IndyMac Bancorp, the ninth-largest U.S. mortgage lender last year in terms of loan volume, is following in the footsteps of it's parent company Countrywide according to a Wall Street Journal Article . IndyMac began dismantling most of its business amid heavy losses from mortgage defaults. Shares fell 38% to 44 cents. Matters weren't helped when a US Senator questioned its ability to survive the housing crisis. In consequence, depositors have been withdrawing cash at an "elevated" pace since the announcement.
Well, it will be interesting to see what happens in the next few weeks. I think Bank of America picking up Countrywide is like buying a toaster at a garage sale. You think you're getting the deal of the century later to find out all you're left with is a crappy toaster that burns down your house and now you're out a lot of money.