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IndyMac may be the Next Mortgage Lender on the Brink of Failure

Paul Kiesel

Attorney
(866) 735-1102 Ext 385

Posted by Paul KieselJune 26, 2008 8:28 PM

Tags: IndyMac, Charles Schumer, Bear Stearns, JP Morgan Chase, subprime mortgages, Alt-A loans, Los Angeles Times

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U.S. Senator Charles Schumer asked U.S. regulators to analyze the financial health of Indymac, as Schumer believes the company may be on the brink of failure. The FDIC, the Office of Thrift Supervision, the Federal Housing Finance Board and the Federal Home Loan Bank of San Francisco all received letters from Sen. Schumer that express his views that IndyMac is having "serious problems."

According to the Los Angeles Times, Sen. Schumer wrote in the letter that he is, "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers [. . .] the bank could face a failure if prescriptive measures are not taken quickly."

Indymac was the largest Alt-A lender in the nation, as the company signed up many borrowers who were just short of qualifying for prime mortgages. Indymac's value has decreased 97% over the past year, and is currently trading at just over $1 a share.

It appears IndyMac will have to raise capital and have to raise it fast, as the company has reported that it's lost over $900 million in the past three quarters, and has likely omitted some dividends and said that it won't make money this year. I'd look out for another government bailout package, as long as another bank comes to the table and is willing to acquire IndyMac in the same fashion JP Morgan Chase did with Bear Stearns.

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Posted by jason hill
July 17, 2008 10:02 AM

New York Times reported that hedge fund managers have a new champion in their effort to keep legally dodging the taxes the rest of us pay: none other than New York Senator Charles Schumer. Now you know who is Schumer's friend and why he caused the bank run on Indymac. He truly support hedge fund and private equity because they truly support him.

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"Large Investor decided to pay a few bucks to a Senator in New York to force the issue."(Prospect Mortgage Backed By Sterling Fund--Private Equity Acquired The Mortgage Branches from Indymac before FDIC takeover)
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"And do remember that there are many investment bankers located in New York, making them pretty influential constituents of Sen. Schumer."
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"In a Sunday news conference, he said everything in his letter was already known to the public."
If it was already known to the public, what is the reason for his public letter? It is contradict to what he said previouly :"I just bring private message to the public. Do not kill the messanger." What a great liar from time to time!
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Same thing he did for FRE and FNM, he forced FRE and FNM to buy $145 billion bad loans last September. So his hedge fund friend could short the stock, then his private equity friend could take huge discount to acquire the properties. So obvious criminal acts, but he is still out law and do whatever to harm the American and benefit himself and his friends.

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