US mortgage bank IndyMac goes under, victim of credit crisis
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Jul 12, 2008, 12:27 GMT
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In response to Marge1- The fact is that every lender, not just IndyMac, doled out cash to borrowers who applied for loans as 'stated income' or 'Alt-A loans.' I agree with you up to the point where you take a left turn and blame this problem on illegal aliens. How do you account for millions of US citizens who also benefitted from these loans? This bubble is about the banks and their greed. Let's not get all xenophobic at the first sight of trouble.
What would US federal regulators do with all the 'assests' at IndyMac? No Bail Out.
THIS ENTIRE MESS WAS SET UP FOR FAILURE. IN THE END WE WILL BE POORER AND THE GOVERMENT WILL HAVE MORE POWER. I HEARD OLD PEOPLE SAY OVER AND OVER THAT THE BANKS CREATED THE 1929 FALL. I NEVER BELEIVED UNTIL I WATCHED IT HAPPEN. I FEAR THE WORST IS YET TO COME.
The sub-prime diaster is over. Alt-A is over, its time for the A loans to fail. And being in the mortgage business and seeing what I see, its not a guess. Just remember, when the feds rates the rate 24 times, what did you expect? As far as bad loans? Tell me, Why did the State regulators stop the bad loans for all those years when they did there audits? Because it was what the goverment wanted. The sad truth, America srcewed its own. What have I learned, never trust the goverment again. NEVER!
Marge1 is right, there is a elephant in the room and no see it.
Marge1 is right, there is a elephant in the room and no one see it.
Indymac, Countrywide, New Century and others pushed easy lending. Wall Street bought these security backed loans and made a bundle. Many borrowers purchased houses that they couldn't afford.
Who's fault is it?
Everyone. It's called greed! From the average American, to the lenders, to Wall Street, to the federal regulators and congress who are suppose to regulate the industry. Also, local governments benefitted from higher tax revenues.
It's time to pay the piper. We need to bail out Fannie & Freddie to prevent being sucked into the abyss.
Going forward, they should regulate income documentation to only full doc. They should only have 30 or 15 year fixed loan products. Loan Officers and Realtors should have extensive classes on ethics.
Marge1,
Your are very right. The cost of illegals to the taxpayor are just beginning. Defaulted mortgages, schooling for their children, free meals, housing subsidy, WIC and other food 'stamps' are only the tip of the iceberg. Just wait until those who haven't contributed to Social Security, demand (and thanks to Calfornia) will get payouts from s system set up long before illegals started amassing in this country. Talk about an econimic meltdown and war in the streets!
Oh, by the way, thanks a lot Los Angeles for MS13 and to the El Savlordians for forming the most widespread, dangerous and harmful gang threat to OUR society. Thanks too, for costing the American taxpayors millions to incarcerate (that's put into prison for those of you in Rio Linda) a disporportionate number of illegals, especially Hispanic.
Of additional note, is the fact that banks have made loans they shouldn't have made to folks of all kinds that didn't deserve them -- did not qualify under traditional rules for home loans. Looks to me as though the banks got greedy and the borrowers got too big for their britches.
In either case of faulty loans to Americans or illegals, and in the case of baby sitting illegals, Calfornia once again has lead the way down the wrong path. Don't ask me to bail your irresponsible butts out of debt.
Funny when liberals rule, there is always a major mess. With Calfornians, liberals, feminist, homosexuals and foreigners in the lead, this country is already on an irreversable path to destruction.
Thanks a lot (that's muchas gracias) to you Calafornians.
'Darned if it does and darned if it doesn't.' All of this talk about the credit crisis as an example of too much government is silly. From my perspective, the regulation of credit and the money supply is a legitimate function of government that has been reduced in part during this extension of the Reagan era.
Stop and think, even the conservative financial community that dominates Wall Street is calling for us to re-think and tighten the regulations governing our financial institutions.
Appropriately, Americans believe in limited government. But please, it is too simple to pose the issue as one of 'any government is bad government.'
R. William Holland
Board Chair, United Professionals and author
Are There Any Good Jobs Left? Career Management in the Age of the Disposable Worker.
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Marge1Jul 12th, 2008 - 13:57:44
For the truth about IndyMac:
'IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets. The company sold most of the loans it originated but continued to hold some on its books. As defaults piled up, IndyMac's finances deteriorated.' It is outrageous that the FDIC would ensure a bank that does not require borrowers to show Social Security Numbers or proof of income for ability to pay. Many of these loan defaults are from Illegal Aliens who use ITIN numbers and other sham documents. Now they just walk away and the American taxpayers can pick up the tab. Absolutely disgraceful. Not surprised for a California-based bank in a State going bankrupt due to illegal aliens and a legislature and governor who live in denial.
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