Monday, July 14, 2008

FDIC Takes Over Failed IndyMac Bank

California-based IndyMac Bank, which had specialized in risky mortgages, was seized by the Federal Deposit Insurance Corporation. It is the second largest bank failure in U.S. history and the fifth bank this year to fail.
The bank reopens today under Federal control.
FDIC says 90 banks are currently at risk of failing.


Pete said...

Now that IndyMac is the first of many banks to fail, I think we're going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that's a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.

I'm an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don't think there going anywhere, but you never know. Investments are all risky.

I never thought I would see this happen here in the USA, but here we are....let's all cross our fingers.

Ed Pell said...

I hope you're wrong, but I suspect you're right.

It's a sad state of affairs that THIS is actually an order the Fed had to give, or that the giving of it is news: "...the Federal Reserve Board on Monday voted unanimously to bar lenders from making higher-priced mortgages without regard to a consumers' ability to repay."