Had a reasonable 4th of July holiday. Strange weather made it tough to do anything in the afternoons due to raging thunderstorms. Monday back at work after 5 days off is always hard.
IndyMac Effectively Finished
The Mortgage Implode-O-Meter had an update saying the end was near for Indymac bank as of today. While IMB is not technically closed, they are basically finished as an entity. I see IMB as the first of many banks that tried to hold their breadth and pray for a turnaround in housing. They ran out of time.
The IMB banking blog report has all the particulars here:
I can sum up as follows:
-Layoffs of 50% of workforce (7,200 employees cut to 3,400)
-Additional capital raising probably not an option (lower than $1 share price does that!)
-Mortgage loan portfolio has ZERO bids; Cannot even sell assets for capital
-No new loans going forward
So IMB cannot raise cash, cannot write new business, and has a portfolio that is worthless? I am going to venture a guess they are all done, agree?
This is another marker in the poor loan marathon. It will not be the last. Many other players are still in denial about their own loan portfolios. The FED has been able to put the banks on life support since last summer, but the IMB failure is going to start another revaluation of the banks. Long summer ahead.
Summer time is activity time. It has become very hard to try and fit in any after work activities and still put on good material on this blog. I hate just doing a linkfest! I think that going forward over the summer, posting may be erratic and spotty. I am going to be doing things outside more, and a remodel of the den is at hand which will limit my computer access anyway.
So what does this mean? Well, I will likely only be able to do 2-3 blogs a week. Sorry to the hard core loyal readers. I will try to do better, more in depth posts when I do to try and make up for the lower volume.
Please check in from time to time, I do appreciate all the readers that come by and contribute. When the fall rolls around I will probably be back to regular posting.
Have a good night.