breaking: FBI investigating Indymac for fraud

[spanone]

WASHINGTON (CNN) -- The FBI is investigating Indymac Bancorp for fraud, a source tells CNN.

The California-based bank was taken over by federal regulators last week.

Indymac's collapse was the second-largest bank failure in U.S. history.

A source with knowledge of the investigation said the federal government is looking into whether the bank engaged in fraud when it made home loans to high-risk borrowers.

The source said the investigation is focused primarily on the company, not individuals.

http://www.cnn.com/2008/US/07/16/fbi.indymac/index.html

[tekisui]

1. The company may have committed fraud,

but no people? Those damn slippery companies.

[spanone]

3. does sound a bit odd

[Ghost in the Machine]

12. Do you support the death penalty for companies?

That's the *real* question here.


BREAK OUT THE WRECKING BALL & DOZERS!!


We need to nip these law-breaking companies in bud, man....

:evilgrin:

[tekisui]

14. I am against capital punishment, but would make an exception for

fraudulent companies.

[Clear Blue Sky]

2. It would be interesting to see which members of congress

accepted contributions from this bank. For perhaps looking the other way rather than looking at the bank's troubles.

[tridim]

4. Is there any aspect of the American economy that isn't fraudulent?

Call me cynical, but everywhere I look I see it. It's the reason I don't have any money in the market.

[indepat]

7. It's the 'puke lazy-fair mentality: keep the government off the back of bizness and let the boys

be boys and have at it to rake in the profits and all ill-gotten gains: we'll socialize the losses later. :D

[depakid]

5. If the FBI and state authorities prosecuted all of the fraud

they'd have to build a dozen new prisons. Thats said, I'm glad to see that at least some of the worst (in terms of consequences for the corporation involved) are at least being investigated.

It's a start.

[Ichingcarpenter]

6. IndyMac was spawn from Countrywide.

IndyMac Spawn of Countrywide

Countrywide Mortgage Investment was founded in 1985 as a dumping ground for loans that were too big from the original mortgage sausage maker, Countrywide Financial. Ironically, these were the loans that were too big to be sold to big brother Fannie Mae and Freddie Mac which have their own obscure and fascinating history. In 1997, Countrywide Financial decided to spin the company off as an independent unit which is (was) the beloved IndyMac Bank.

IndyMac Bank profited handsomely during the decade long housing and credit bubble. They expanded their services by acquiring Financial Freedom in 2004 who were experts in the reverse mortgage business. The only problem with having reverse mortgages is you have to have equity in your home which of course is now becoming rarer with the housing collapse. As the FDIC sorts through the mess, I’m sure this piece of the pie will be bought off since there is a legitimate viable market with the many baby boomers that will be retiring soon. In the midst of all the mortgage mess it is easy to forget that housing for the most part is a good investment. Approximately one-third of those who own their home have no mortgage. Many of these are facing retirement soon. So we’ll see how the vultures divvy up the $32 billion in assets.

IndyMac like many alternative lenders was simply another casualty of the housing Ponzi scheme. During the boom days, IndyMac soared to peak share price of $50 during the peak in 2006.


Interesting interview at this link they did in 2006 on CNBC where the CEO
ignored problems back then.



http://www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/

[onethatcares]

8. I am amazed, I say, AMAZED, that

so many people without good credit could dupe these two financial giants into granting them mortgages. I remember back in the Clinton days when all we heard about was the people shouting, "We want to buy homes without income verification", if'n my memory serves me correctly, they got congress to go along with them, thereby forcing the banks and mortgage companies to give money to people even if they didn't have jobs, downpayments, or even if they had less than good credit. I have to applaud those that fought long and hard to get those adjustable rate, no money down, interest only payment plans that they so thoroughly deserved. I also applaud their ability to get the bankers of the united states of america to cowtow to their wishes. :toast:

[lpbk2713]

9. Bad, bad company!

... but the Officers and Directors are good ol' boys and girls.

Especially if they donate to the RNC. :eyes:

[spanone]

10. so did we bail out the criminals?

[SoCalDem]

11. Guess what?... MOST of the recent lending has been FRAUD..

Not just IMD.. It;s the tip of the iceberg.

What need to happen is this:

When an implosion happens, ALL property of Board of Directors, CEOs & Managers gets impounded, auctioned and the money generated gets divvied up between the people who banked there...starting at the BOTTOM.. That would END the shenanigans..

ASs long as the ones at the top..the ones who KNOW what's going and and who support and nurture the deceptions, get away with their ill-gotten loot, this will just keep happening..

Letting them apologize , pay a fine, and keep their treasure, solves NOTHING...

[exothermic]

13. Gotta love their timing.

:shrug: