When did the IndyMac Bank in California fail?
When did the IndyMac Bank in California fail?
IndyMac, a contraction of Independent National Mortgage Corporation, was an American bank based in California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation (FDIC).
What was IndyMac Bank’s capital ratio in 2008?
Indymac concluded that these downgrades would have negatively impacted the Company’s risk-based capital ratio as of June 30, 2008. Had these lowered ratings been in effect at March 31, 2008, Indymac concluded that the bank’s capital ratio would have been 9.27% total risk-based.
What was the business model of IndyMac Mortgage?
As an Alt-A lender, IndyMac’s business model was to offer loan products to fit the borrower’s needs, using an extensive array of risky option-adjustable-rate-mortgages (option ARMs), subprime loans, 80/20 loans, and other nontraditional products. Ultimately, loans were made to many borrowers who simply could not afford to make their payments.
What did the FDIC do with the IndyMac Bank?
The FDIC put the assets up for auction and the bulk of the business was sold to IMB HoldCo LLC who turned this into OneWest Bank. The FDIC kept some of the assets and liabilities that it could not sell in a holding entity known as IndyMac Federal Bank, which would be slowly wound down.
What was the total cost of the Fannie and Freddie bailout?
The Fannie and Freddie bailout was greater than the 1989 saving and loan crisis, which cost the taxpayers $124 billion. It was on par with the subsequent bailout of AIG, which started at $85 billion but grew to $182 billion.
How did the government bail out Fannie Mae and Freddie Mac?
The bailout came as the U.S. Treasury Department was authorized to purchase up to $100 billion in preferred stock of the organizations and buy mortgage-backed securities. As a result, Fannie and Freddie were put into conservatorship by the Federal Housing Finance Agency (FHFA). The Bailout Cost to Taxpayers
When did the FDIC take over IndyMac Bank?
A bridge bank, IndyMac Federal Bank, FSB, was established to assume control of IndyMac Bank’s assets, its secured liabilities, and its insured deposit accounts. The FDIC announced plans to open IndyMac Federal Bank, FSB on Monday July 14, 2008.
Who are the banks that got the federal bailout?
For instance, JPMorgan Chase ( JPM, Fortune 500 ), Citigroup ( C, Fortune 500) and Wells Fargo ( WFC, Fortune 500) led the pack with $25 billion in federal funding. Smaller banks are getting far less, and,some banks are using their loans to purchase smaller banks.