IndyMac Bancorp files for Chapter 7 bankruptcy
|
|
|
| Posted
:
Fri, 01 Aug 2008 14:03:09 GMT |
| By
:
Reuters |
| Category
:
US (Business) |
| News Alerts by
Email ( click
here ) |
|
US Business News |
Home
|
|
|
|
By Jonathan StempelNEW YORK (Reuters) - IndyMac Bancorp Inc , once one of the largest U.S. mortgage lenders, has filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors.The Pasadena, California-based company filed for Chapter 7 protection on Thursday with the U.S. bankruptcy court in Los Angeles, indicating it plans to liquidate. IndyMac expects the court to appoint a bankruptcy trustee promptly.The filing was widely expected. It does not include IndyMac Federal Bank FSB, which is run by the Federal Deposit Insurance Corp and is the successor to IndyMac's former banking unit.Most deposits at IndyMac Federal are insured up to $100,000. The FDIC is trying to sell IndyMac's assets.IndyMac Bancorp, the holding company, has between $50 million and $100 million of assets, between $100 million and $500 million of liabilities, and fewer than 50 creditors, according to the bankruptcy filing.Chief Executive Michael Perry, the company's sole remaining employee, in a court filing said he didn't have information normally required to file for bankruptcy protection because the FDIC has sole possession of IndyMac's books and records.Perry has no involvement in IndyMac Federal's operations.The collapse of IndyMac was the largest U.S. banking failure since the 1980s savings-and-loan crisis. Regulators said IndyMac ended March with about $32 billion of assets and about $19 billion of deposits, most of which were insured.IndyMac was the fifth of seven U.S. banking failures this year. FDIC Chairman Sheila Bair said last week she does not expect another failure of IndyMac's size or larger.The FDIC said IndyMac's failure will cost the regulator's $52.8 billion insurance fund about $4 billion to $8 billion.RBC Capital Markets analyst Gerard Cassidy has said there could be 300 U.S. banking failures in the next three years.LOANS PROVED RISKYIndyMac was the ninth-largest U.S. mortgage lender in 2007, according to the newsletter Inside Mortgage Finance.It was also the largest, publicly traded independent mortgage lender other than Countrywide Financial Corp, which was acquired last month by Bank of America Corp .Founded in 1985 by Angelo Mozilo and David Loeb, who also founded Countrywide, IndyMac once specialized in "Alt-A" home loans, which often didn't require borrowers to fully document income or assets.It collapsed after defaults mounted, and as tight capital markets caused losses on mortgages it couldn't sell.The seizure came after panicked customers withdrew more than $1.3 billion of deposits over 11 business days.These withdrawals followed comments in late June by U.S. Sen. Charles Schumer questioning IndyMac's survival.Continental Illinois National Bank & Trust Co., a Chicago lender, collapsed in May 1984, and is the largest U.S. banking failure. American Savings & Loan Association of Stockton, California, a September 1988 failure, was about the same size as IndyMac.IndyMac shares closed Thursday at 13.5 cents on the Pink Sheets. They are expected to be worthless.(Additional reporting by Julie Vorman in Bangalore; Editing by Vinu Pilakkott, Steve Orlofsky, Dave Zimmerman)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
