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IndyMac Bank Collapses Under Its Own Weight

IndyMac Bank closes.

IndyMac Bank Collapses Under Its Own Weight

IndyMac bank has long been recognized in the mortgage industry as a pioneer in technology and its applications to wholesale mortgage businesses.  They have specialized in unique loans for Jumbo customers and outside the box underwriting with regard to income and asset verification.

I can say from my own experiences with the company on a wholesale level that the news is not a complete shock.  It is significant in that it is the second largest bank in history to close down like this.  But, their internal customer service and general underwriting skills have been nothing to write home about (again, this is based on my personal experience with Florida based wholesale operations).

I have had 2 different friends and associates that have gone to work for the company based on blue skies and empty promises, only to run back to their previous employers begging for forgiveness in less than 90 days.  Those in California who use the bank as their retail checking and savings holders have less to worry about than may be reported in the news.  Any accounts with less than $100,000 are automatically covered by insurance provided by the FDIC.  For accounts with more than that, you still may be safe, but stay tuned to the latest news to see how you will be affected by this in the long run.

While the headlines may be a little scary, it is not the time to go put all of your cash in a coffee can and bury it in the back yard.  Don’t panic, just keep yourself informed.

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1 Comment»

  petes2cents wrote @

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.

petes2cents.com


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