(no subject)
Jul. 12th, 2008 03:49 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
novapsycheGovernment shuts down mortgage lender IndyMac | IndyMac seized as financial troubles spread -- As someone who once worked for a major home mortgage company, I am stunned. This is incredible.
From the Reuters article:
From the Reuters article:
The OTS, IndyMac's primary regulator, blamed comments by New York Democratic Sen. Charles Schumer for causing a run on deposits at the largest independent publicly traded U.S. mortgage lender.
Schumer responded quickly on Friday, blaming the OTS for not doing its job and allowing IndyMac's loose lending practices. "OTS should start doing its job to prevent future IndyMacs," he said in a statement.
Schumer questioned IndyMac's ability to survive the housing crisis in late June, and over the next 11 business days, depositors withdrew more than $1.3 billion, the OTS said.
[...] Four small banks have already been closed this year and the FDIC is hiring more staff in preparation for more failures. The agency has boosted its list of troubled banks to 90 and has said an increasing number of banks face high exposure to deteriorating conditions in commercial real estate and construction lending. Last year, just three banks failed.