Friday, July 11, 2008

IndyMac Bank Fails, Fed Take Over

Friday night the feds stepped in and took over IndyMac, after they suffered run after run on the bank. Customers were withdrawing $100 million a day from IndyMac banks in order to save their cash. This is the first large bank to fail in the U.S. since the 80's.

In a side story one of Bush's little corporate cronies who works for the Office of Thrift Supervision is trying to blame this on Chuck Schumer...

The senator made comments in his letter questioning the viability of the institution,” John M. Reich, director of the Office of Thrift Supervision, said on a phone call with reporters. “When a member of the United States Senate makes such a statement, it frightens depositors.
What a load off crap, I will bet most of the customers of IndyMac would have no idea who Chuck Schumer is. The reality is that John Reich is actually one of the ones directly responsible for the current banking problems. Having a hand in helping to loosen lending requirements and encourage more and more predatory lending.

IndyMac was a major player in the subprime mortgage disaster. The bank had already announced layoffs from the 7,200 employees in a bid to stave off failing.

This is going to spook people. IndyMac is a HUGE bank.