As you have probably heard IndyMac BankCorp Inc. [[IMB]] has taken a dirt nap indefinitely with the Federal regulators taking over their assets. They will open on Monday, but depositors have already yanked $1.3 billion from their accounts.
From what I understand, they were involved primarily with ALT~A loans which generally carries higher credit scores and incomes then that of the sub prime lot. This is the beginning of the next housing blowup saga.
I also find it odd, although I did leave for a bit to go fishing, that there was no real alert or news surrounding this failure on Friday during market hours. I’m almost certain I did not miss much, so I would call the worries over FNM and FRE mis-direction away from IMB.
Furthermore while the bank was closed all day Friday and regulators seized control during market hours, the earliest news story I could find was 6:37 pm on Friday July 11th.
As far as I’m concerned if you bought stock on Friday and the market does a black swan dive Monday the 14th, the public has a good argument against being duped on notification of this activity. Especially if you speculated on Friday in IMB. This was not proper disclosure on a publicly traded company.
More importantly, this is the beginning of a long list of companies that will follow IMB to the grave. A analyst on Bloomberg stated the the FDIC Board told him that we could expect a couple of hundred or more banks to fail over the next two years.
I implore you to discover how small a bank you might be doing business with and consider transferring your accounts over to a large multinational bank in your local area. Even though your accounts are FDIC insured; if your bank goes under you can not know how long it will take to get your insured worthless greenbacks into your possession again.
Also keep a slush fund in your home. Invest in a fire proof safe if you do not already have one. Just in case there is a run on your bank you will not have to join the frenzy of knuckle heads trying to get their money out of their accounts.
Competitors to IMB for short ideas are: BAC, WFC, USB, WM, TCB, VLY, FBC, CMA, HBAN, PACW, CVBF, FTBK, PCBC, DSL, UB, NCC, FITB, KEY, and C. Some of these banks, as you know, have been hurt already so caution is necessary if your going to place individual shorts on these banks. I am not recommending you go short here, but there is probably opportunity abound.
by GW
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That is a very good public service announcement.
If “The Fly” gave two fucks and a fiddle, he’d tell people to keep less than 100k per account.
Also, he’d tell them to stash large quantities of cash in safety deposit boxes, since the rate isn’t worth the hassle.
And, of course, keep some gold in the vault.
People, analysts, Dick Boves of the world, don’t realize what a FANTASTIC, once in a lifetime, deinvesting opportunity this is: to be able to profit off the demise of the US banking system & Joe Q Public’s loss of their savings account. What a great country indeed!
Don’t forget RF. It will go to zero. There are still $8.50 p/s left to clean off that carcass.
Fly,
I know there is a heart some where inside that insect body of yours. I’m sure you give 2 f*’s and a fiddle.
Juice,
Thanx for RF. I think the dick’s of the world know it they are just not telling people to do so since it may add further stress to the crisis of “confidence.”