IndyMac Bancorp Inc., the failed thrift, reopened its doors under federal control Monday and promptly moved to toss ailing homeowners a lifeline by halting all foreclosures on the mortgages it owns.
Federal Deposit Insurance Corp. Chairman Sheila Bair, who has been one of the most outspoken officials calling for banks to ease up on struggling homeowners, said that the agency is "really focused" on keeping borrowers in their homes for both their sakes and to maximize IndyMac's value for taxpayers. "We will very aggressively pursue loan-modification strategies for unaffordable loans to make them affordable on a long-term, sustainable basis," Ms. Bair said in an interview Monday.
The FDIC's move came as hundreds of depositors lined up to withdraw funds at the branches of the thrift, now renamed IndyMac Federal Bank. At the thrift's Santa Monica, Calif., branch, a line extended down the street and around the corner. Some people waited for hours to get their money at IndyMac's Pasadena, Calif., headquarters, but the crowd remained orderly.
More on the story.
And there is speculation of more banks that may follow this path. And I wonder if Wells Fargo, Bank of America, and/or Washington Mutual on the list?
1 comment:
This is something most people only read about. During the Great Depression there was a run on the bank. Now IndyMac has a run on their bank and anyone with a brain would take their money and run. If a person continues to deal with this bank they should just burn their money because it is gone anyway. I heard Bush say today how good our economy is as if he just got in the White House. I guess Bush says people believed the lies he's told for 7 years so nothing has changed.
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