Regulators Shut Down IndyMac (IMB)

Late today the office of thrift supervision shut down IndyMac, it was the second largest financial institution in US History to close down. I guess Paul J. Miller Jr. will now have to stop following IMB since it no longer exists.

"IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures. ...

The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.

IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said.

IndyMac had $32.01 billion in assets as of March 31.

The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse.

In the 11 days that followed the letter's release, depositors took out more than $1.3 billion, regulators said.

Some 10,000 depositors had funds in excess of the insured limit, for a total of $1 billion in potentially uninsured funds, the FDIC said.

In the letter to shareholders, IndyMac Chairman and Chief Executive Michael W. Perry said the drastic measures were made in conjunction with banking regulators to improve the company's financial footing and "meet our mutual goal of keeping Indymac safe and sound through this crisis period."

The plan was supposed to generate roughly $5 billion to $10 billion per year of new loans backed by government-sponsored mortgage companies, Perry said at the time.

But the run on its deposits ultimately short-circuited the strategy, prompting regulators action Friday. " -Source

Hmmmm, I wonder if that dickhead "analyst" Paul J. Miller Jr. had anything to do with the run on the bank this week. If I had money with a bank who's stock just had a price target of ZERO set on it, I think I would definitely try and get all of my money out asap. Is it just a coincidence that the bank collapse happened to coincide with the $0 price target? Who knows, that article seems to blame a letter by the honorable senator from New York. Whatever the case, all the talk of the banks certain demise seems to have become a rapidly self fulfilling prophecy.

In conclusion of the IMB matter, way to go Paul J. Miller Jr.!!! Your brilliant price target was met in less than one week! In honor of you really nailing this thing down I give you the slow clap. I couldn't find a picture of you so I will just imagine that you look identical to George Clooney, what a pimp.