Financial Solution News

IndyMac will cover 50% of uninsured deposits as IndyMac Federal Bank.
The government is stepping in to support IndyMac. Having just changed its name from IndyMac Bancorp after it was seized Friday. The FDIC has assumed control saying it will cover 50% of uninsured deposits and fully insure all up to $100,000, which is normal.
John Bovenzi, the FDIC COO says there’s probably no bank in the country that has access to greater capital and liquidity than Indymac Federal Bank. He also states the FDIC expects to sell it in the next 90 days.
Because Charles Schumer has loose lips, IndyMac Bancorp became the second biggest federally insured financial company to be taken over by regulators.

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Two days after the Federal Deposit Insurance Company took over California based IndyMac Bancorp Inc, officials say the bank will reopen Monday morning (Today) for business as usual.

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It is not just Bank of America that is reeling from subprime problems, the largest banks in the world have posted $290 billion of credit losses, since the beginning of 2007.

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WAMU said that they wanted to, “Strengthening the Mortgage Industry” in a recent press release and now they need their mom to help them goto the bathroom.
They unveiled a program that they said would change the industry and they would now apply mortgage industry leadership standards. So what happened to this industry leadership?
They only NOW offered full disclosure to clients, maybe they were better off not telling clients about the mortgage they were getting.
On a serious note, it is too bad for their stockholders, the hundreds of employees they are letting go and the millions effected by their what we have all come to realize is actually a ‘Lack of Leadership’.

Here is their political spin in an effort to try to look good.

April 7, 2008, WaMu announced significant changes affecting our Home Loans business. As part of this
announcement, and consistent with the company’s retail focused strategy, WaMu has made the […]

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$18.1 Billion in writedowns and 4,200 layoffs. US Banks are a good buy for foreigners?
How bad of an idea is this?

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National City is cutting its dividend by almost half. It also announced 900 more jobs cuts, as a result, the stocks are fell as much as 6.1% on Wednesday. Job cuts announced bring the total number to 3400 jobs. National City says it will continue making home loans, just the retail line. Due to their massive problems, they are completely out of the wholesale business. Keep in mind that National City is out of the subprime mortgage business as well. They sold to Merrill Lynch in 20006. One third of their branches are in Ohio and Michigan, these are states with higher than average mortgage foreclosure rates.

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National City Closes Residential Wholesale Lending
National City will reduce its quarterly dividend by 49 percent and cut 900 more jobs as it stops making home loans through their wholesale division.
The lender has cut its staffing by 3,400 positions in the past year, including the reductions announced today, as the credit crunch worsens.
National City will continue making home loans through its own staff, the bank said. The housing market “requires aggressive steps to overcome the near-term challenges”, Chief Executive Peter Raskind said in a statement today.
“It is clear that origination volumes will be lower going forward”, it appears that the type of mortgages offered by National City are no longer desired on the secondary market.
Mortgage companies who offer Home Equity Lines of Credit or ’second mortgages’ find themselves in a particularly awkward position in todays market. Millions of homeowners that have a Home Equity Line of Credit have little or […]

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Mortgage Job Decline Slows
Employment in the mortgage industry appeared to stabilize in October as lenders cut their work force by 1,600 positions after purging their payrolls of 25,600 full-time employees in September.
The U.S. Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector declined from 403,100 in September to 401,500 in October.
Since February (the high point in mortgage employment this year), the industry’s work force has been reduced by 18%, and 88,300 employees have lost their jobs. There is a one-month lag in breaking out the mortgage banker/broker sector data.
But Friday’s jobs report points to more job losses when next month’s report is released. BLS acting Commissioner Philip Rones said employment in credit intermediation declined by 13,000 in November, “reflecting weakness in housing and mortgage lending”.