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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:11 AM
Original message
The California-based IndyMac Bank, has collapsed
Why did I see this on BBC late last night and not anywhere on US M$M

http://news.bbc.co.uk/2/hi/business/7503109.stm

One of the largest US mortgage lenders, the California-based IndyMac Bank, has collapsed amid a growing credit crisis.

Federal regulators seized the bank's assets, fearing it might not be able to meet withdrawals by depositors.

It is the second-largest financial institution to fail in US history, regulators say.

The OTS believed IndyMac was unlikely to meet its depositors' demands and transferred its operations to the Federal Deposit Insurance Corporation (FDIC), which will seek a buyer.

IndyMac customer Steve Knieerein told ABC television: "I'm very angry, very upset about this. I wanted to withdraw my money."

People with deposits of up to $100,000 each are covered by insurers.

But about 10,000 people had uninsured funds over that limit with IndyMac - worth a total $1bn at the time of closing.
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katmondoo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:25 AM
Response to Original message
1. One bank failure under Poppy Bush one under G.W. Bush
Way to go guys
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:29 AM
Response to Reply #1
2. One bank failure under W?

It is the fifth US financial institution this year to succumb amid a credit crunch, falling house prices and rising foreclosures.


The king of clusterfucks has outdone Poppy by a distance.
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KharmaTrain Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:31 AM
Response to Original message
3. There's A Reason You're Not Hearing It...
Our corporate media is already hyperventilating over the economy...this would just spin things even further. Helicopter Ben works best when he swoops in when no one notices and THEN you hear about it. I'm sure there's a relationship with this collapse and the pending collapse of Fannie Mae and Freddie Mac...and it's sure to start yet another round of bank bailouts and write-offs.

Here's the rub...a dirty secret is that the fall of the market over the past year has really begun to bite on many investors. The sidelines are crowded now and more head for it as each new triple digit low is hit. One can make more money right now is a simple saving's account than in many areas of the market. Thus, the market, the government and the media (who needs a strong market for their own bottom line) downplay the bad news...spoonfeeding it to us sheeple so we will also believe that it's all a "mental recession".

:hi:
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:32 AM
Response to Reply #3
4. It was the first item of news on BBC International
last night.
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KharmaTrain Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:44 AM
Response to Reply #4
6. Cause Guess Who We'll Be Running To For The Bail-Out
I wouldn't be surprised if the assets are sold to a European concern...probably one that's already holding a ton of US paper...the weak dollar works to their advantage.

Yep, I haven't heard a word about it here...but there's been some excelent anaylsis of what's going on over at Atrios. The banking system in this country is hanging on by a thread...if its not bad housing loans then it's bad business investments and credit card debts that are making a bad situation worse.
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:22 AM
Response to Reply #6
20. There will be fewer takers are the crisis
deepens.
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KharmaTrain Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:30 AM
Response to Reply #20
22. Bargain Hunters
We're already seeing European companies coming in to find under capitalized or struggling companies that they can buy for pennies on the dollar...or should I say, Euro. Some will buy it for the assets and try to sell it off, others will shut companies down as not to compete with other companies they operate here and even others will gamble that there will be bailouts and their paper will start getting some value in the future.

I had a business mentor who loved situations like this. He was a bottom feeder who came in and bought struggling companies at their bottom and if he didn't see a possible future profit in keeping the company whole, he always found buyers for the assets. We've entered the golden age of Vulture Capitalism.
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charlie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:36 AM
Response to Original message
5. Friday news dump
Of course it's intentional, but not to protect Dubya for once. The FDIC wants to swoop in, secure the bank's records, and either shutter or sell it as fast as possible. They're really amazing, stealthy and FAST, sort of like a Men in Black cleanup crew:

http://www.charleston.net/news/2008/jun/08/anatomy_bank_failure_when_liquidators_comes_callin
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:47 AM
Response to Reply #5
7. Wow
That's two - do you know the names of the other three?
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charlie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:55 AM
Response to Reply #7
8. Here
http://www.fdic.gov/bank/individual/failed/banklist.html

It's going to be unnerving watching that list. Will it blossom or will it explode?
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 06:59 AM
Response to Reply #8
9. Thanks
Damn!!!
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warren pease Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 03:18 PM
Response to Reply #8
28. Trouble in Cheneyville...
A bank called The Farmers Bank & Trust of Cheneyville in Cheneyville, Louisiana went under a few years ago. While only a Cheney-class slime bucket and emotional zero would be unmoved by the hardship the depositors must have experienced, it's also the perfect ironic metaphor for what's happened to this country under the Junta.

When one of the world's top five criminal enterprises tries to pass themselves off as politicians, can't get elected, but conspires with the supremes to steal the office anyway, you kind of know what you're in for. These swine have no idea how to govern; don't even want to bother. They just want a clear path to the uncountable piles of swag stored in vaults or computers in the world's major financial centers.

It's the great neocon depression, and it's only right that there's a failed bank in an economically failing town bearing the name of the most dangerous criminal sociopath of them all.

The massuhs have been pissed off for centuries that they could never manage to steal the 5 or 10 percent of the world's assets that stubbornly refuse to abandon the peasantry and move into any of the vaults owned by the top 1 or 2 percent, as gawd had always intended.

But it looks like that's finally taken care of. This enormously profitable money transfer scam is now codified in US federal law.

This latest attack on the lower 98 percent began with tax cuts that reward the rich just for being rich. Then privatization kicks in. So like all cases of parasitism, the tax cuts significantly weakened the host even before the Iraq insanity has nearly killed it.

Because it works, the Cheneyville model's being applied throughout the country. It's been spectacularly successful at rewarding the "haves and have mores" by embedding a system of corporate welfare passing as a laissez-faire capitalist free market globalized heaven on earth. Only predators need apply.

So how's everybody doing in Cheneyville? A few random stats on education and work for people 25 years and over:

* High school or higher: 53.2%
* Bachelor's degree or higher: 11.8%
* Graduate or professional degree: 5.3%
* Unemployed: 43.9%
* Mean travel time to work: 33.8 minutes

Any place named Cheneyville can probably forget about growing, prospering or even surviving long term.

Single-family new house construction building permits:

* 1996: 0 buildings
* 1997: 0 buildings
* 1998: 0 buildings
* 1999: 3 buildings, average cost: $112,300
* 2000: 3 buildings, average cost: $112,300
* 2001: 0 buildings
* 2002: 0 buildings
* 2003: 0 buildings
* 2004: 0 buildings
* 2005: 0 buildings
* 2006: 0 buildings
* 2007: 0 buildings


Cheneyville compared to the Louisiana state average:

* Median household income significantly below state average. ($19,044)
* Median house value significantly below state average. ($35,400)
* Unemployed percentage significantly above state average. (43.9%)
* Black race population percentage significantly above state average. (65.7%)
* Foreign-born population percentage significantly below state average. (0.04%)
* Percentage of population with a bachelor's degree or higher below state average. (estimated at 17%)


And on the poverty scale:

Residents with income below the poverty level in 1999:
This town: 43.9%
Whole state: 19.6%

Residents with income below 50% of the poverty level in 1999:
This town: 17.0%
Whole state: 9.4%


But at least they're tracking the critical stuff:


Likely homosexual households (counted as self-reported same-sex unmarried-partner households)

* Lesbian couples: 0.0% of all households
* Gay men: 0.7% of all households


Things may suck in Cheneyville, but they got their consolidated radio/TV media just like everybody else: MS Communications owns four radio stations and eight TV stations; Capstar TX owns four radio stations; the Bible Broadcasting Network is also represented. Strangely, there's no mention of NovaM or Jones or even AAR. Odd...

Cheneyville is home to a few members of the political donor class. Two residents were so overcome with gratitude to the GOP and the Bush economic miracle they decided to chip in to help the RNC pay the enormous costs they've accrued recruiting and compensating competent voting machine riggers: a good sum for their expertise and a huge sum for their silence.

One guy seems to have started slowly at the $250 entry level in 2003 but, by the end of August 2004, he had moved all the way to heavy petting, which starts at $1,000. But the other donor, an author, gave $300 to the RNC once in 2003. The guilt was apparently overwhelming and she never did it again.

A couple dozen farmers kicked in a few hundred apiece to the American Sugar Cane League PAC, and the same guy who got to third base in 2004 also spent another thousand on Friends of Bobby Jindal Inc. Here's the whole list, and a bunch of pikers they are, too.

I think Larson actually got the whole republican enchilada with that gift. But these days, that means spending the night with Dr. Laura, from the first martini and some hors d'oeuvres around 5:00 in the afternoon to the fast, silent exit about 12 hours later. I expect he wants his money back.

Bobby Jindal, who I'd never heard of before, is the GOP governor of Louisiana and has been touted by "insiders" as a potential running mate for McPain. He seems to be weird and religiously insane enough.

He's a Punjabi-American, a Rhodes Scholar and a convert to extremist Catholicism at the Opus Dei/Scalia end of the scale. He's big on "intelligent design" and not really all that interested in facts or science or proof of concept if it contradicts literal biblical interpretation.

This is from part 59 in a series of articles called "The Catholic Right" by Frank Cocozzelli featured on a news/op-ed/discussion blog called Talk to Action, which welcomes people who are "...concern(ed) about the "religious right", the Christian right, Christian nationalism, encroaching theocracy..."

Jindal is obviously a bright guy, which begs the question why he's a republican, a winger and an anti-science religious loon. He's also one of only a few people who would voluntarily get within a lightyear of McPain without being coerced. And he's a convert to extremist Catholicism, the kind that's associated with the Opus Dei/Scalia end of the scale.

But he's not quite untouchable (not meant in the caste sense). He participated in an exorcism while in college and wrote this essay on the experience, thus leaving one of the things wingnuts hate most: a paper trail of their wingnuttery.
[br />At least the exorcism was a success. Jindal's team of ghost busters cast out the offending spirit and everybody, including the woman who was allegedly harboring this demon, survived the experience with no apparent damage. And he wrote that he believes the ritual may also have cured the possessed woman's cancer.

So he's got a national health plan, too.


wp

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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:07 AM
Response to Reply #5
12. Closed an S&L once
During the 80's S&L crisis. The RTC hired 30 CPA's to swoop into this tiny town. Loaded us into non-descript gray government vans.

Once on the van they informed us that our "cover" was that we were plumbers, there for a convention. Not very convincing, given that suits and ties were the dress for the males, and business suits for the ladies.
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:20 AM
Response to Reply #12
18. Interesting
Under cover in suits and ties
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charlie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:20 AM
Response to Reply #12
19. Heh
I realize speed and discretion is important, panics are ugly and can metastasize. But I didn't know closing a bank would look like a cloak and dagger SWAT exercise. That article I linked above was fascinating.

I remember the numbers the RTC was throwing around back then. One, two, maybe THREE HUNDRED BILLION dollars before it would be finished. Made us swoon. Sounds like pocket change anymore. Heaven help us.
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NNN0LHI Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:01 AM
Response to Original message
10. CNN was asking if people should withdraw all their money from savings accounts this morning
I did that a long time ago.

Don
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Sydnie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:04 AM
Response to Original message
11. MSNBC is reporting this now this morning n/t
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:16 AM
Response to Reply #11
16. Maybe they picked it up from BBC
I found it very strange that BBC had detailed coverage late last night but we hadn't heard a word from US media.
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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:17 AM
Response to Reply #16
17. I heard about it yesterday
US media and everything.
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:23 AM
Response to Reply #17
21. Link please n/t
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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:33 AM
Response to Reply #21
24. One of them
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:36 AM
Response to Reply #24
25. Thanks
IndyMac announced on July 7 that it was firing half its employees. The lender agreed to sell most of its retail mortgage branches to Prospect Mortgage, giving the Northbrook, Illinois based-company more than 60 branch offices with 750 employees. IndyMac also has a retail network with 33 branches and $18 billion in deposits, mostly insured by the FDIC.
-------------------------
How many workers are we talking about here - 33 branches!!
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:09 AM
Response to Original message
13. With plenty more to follow......
:popcorn:


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madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:12 AM
Response to Original message
14. anyone who had over 100,000 is a fool.....
i do`t feel a bit sorry for them or their financial advisor's
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dems_rightnow Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:14 AM
Response to Reply #14
15. That's what I was thinking
Over $100k in a failing bank? Pay attention!
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:32 AM
Response to Reply #15
23. GEM$NBC says this is one of the biggest banks to
crash. Meanwhile crude oil is $147 today - new record.
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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:40 AM
Response to Original message
26. A big, big story..
A really big, big, big story. :-(
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 07:41 AM
Response to Reply #26
27. No doubt
It is the second-largest financial institution to fail in US history, regulators say.
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 03:35 PM
Response to Original message
29. Kick and Rec, this will not be the last mortgage lender to collapse
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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-12-08 05:45 PM
Response to Reply #29
30. So Bushco is trying to blame Chuck Schumer for the run on IndyMac
IndyMac Bank's collapse. Just heard that on NBC news. Here's a link

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 withdrawals by panicked customers.

The OTS's Reich said Schumer's comments gave the bank "a heart attack," according to the Wall Street Journal.

Schumer quickly responded: "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," the Journal quoted him as saying.

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

http://afp.google.com/article/ALeqM5hHT0GmHDBOa4LFutdswkfe-SSvOg

Look at this headline:
Chuck Schumer Causes $1.3 Billion Run On IndyMac: Bank Failure Results

http://clipmarks.com/clipmark/A5306017-5805-4394-9C2B-A2CEB9305162/

These fuggers are special.
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