US mortgage specialist IndyMac collapses


US mortgage specialist IndyMac collapses
Assets held by California-based lender IndyMac Bancorp Inc were seized by US regulators on Friday.

A statement on the company's website announced that the company had been closed by the regulatory body, the Office of Thrift Supervision (OTS), and its assets had been taken over by the Federal Deposit Insurance Corporation (FDIC).

The mortgage lender experienced more than $1 billion (£500 million) in withdrawals over the last two weeks as concerns about its financial health increased.

OTS director John Reich said a "liquidity crisis" had resulted in the collapse of the bank, making emergency measures necessary. A spokesperson for the body added that the collapse of the mortgage specialist was the second-largest banking failure in the country's history.

Heavy losses on subprime home loans, securities tied to risky US mortgages, have resulted in firms shoring up their capital and avoiding lending to other institutions. The lack of cheap credit has made it more difficult for financial institutions around the world to meet their daily needs.

Over the past week, concerns have also been raised about the financial health of the country's two largest mortgage lending institutions, Freddie Mac and Fannie Mae. The two bodies fund close to 70 per cent of all US mortgages and analysts have warned that the failure of the two bodies could have far-reaching consequences.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure