And another one bites the dust...

Discussion in 'Wall St. News' started by ByLoSellHi, Jan 15, 2008.

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    IndyMac Laying Off 2, 403 Employees

    Published: January 15, 2008
    Filed at 7:44 p.m. ET

    Mortgage lender IndyMac Bancorp Inc. said Tuesday it will slash its work force by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans.

    The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the Pasadena-based company said.

    ''This action is clearly painful, but it is necessary in our drive to return Indymac to profitability soon,'' Mike Perry, IndyMac's chief executive, said in a memo outlining the layoffs to employees.

    The latest round of layoffs follows a reduction of about 1,600 workers last year through voluntary resignation. The company ended 2007 with a work force of 9,938.

    The lender said the job cuts were necessary because the company still faces a lack of demand for home loans on the secondary market and tighter access to capital due to the credit crunch that followed the collapse of the subprime mortgage market in August.

    Perry noted the company has ''a significant capital cushion and strong liquidity'' but needs to keep costs down because it has been unable to sell its prime jumbo home loans on the secondary market and must keep them on its balance sheet.

    IndyMac said it would take a pre-tax charge to earnings for severance and other expenses related to the work force cuts of about $25 million in the first quarter, among other charges still to be determined.

    The company expects to save $136 million annually in labor costs, in addition to other savings from vacated office space.

    ''The bottom line is that these savings are essential in our drive to return IndyMac to profitability soon,'' Perry said.

    The lender posted a loss of $202.7 million during the third quarter ended Sept. 30.

    IndyMac -- which primarily originated alt-A loans for customers who cannot provide documentation like traditional, prime borrowers -- has come under increasing pressure like other lenders as delinquencies and defaults among mortgages rose in recent months.

    Because of the rising delinquencies, investors shied away from purchasing mortgages in the secondary market. Lenders like IndyMac rely on secondary markets to replenish capital to originate new loans.

    As of Sept. 30, IndyMac had about $366 million in nonperforming loans in its held-for-sale portfolio and another $463 million in other portfolios.

    Last month, Perry said in a statement that he expected the company to report a loss in the fourth quarter and was hoping it can be profitable again by the second half of next year.

    IndyMac shares slipped 27 cents, or 5.6 percent, to $4.49 on Tuesday.
  2. Well it's FDIC bankrupt Friday and todays winner is? drum roll........ First Priority Bank.

    SunTrust Bank Acquires the Insured Deposits of First Priority Bank, Bradenton, Florida

    August 1, 2008
    Media Contacts:
    Andrew Gray (Cell: 202-494-1049)
    David Barr (Cell: 703-622-4790; Office: 202-898-6992)

    First Priority Bank, Bradenton, Florida, was closed today by the Commissioner of the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with SunTrust Bank, Atlanta, Georgia, to assume the insured deposits of First Priority.

    The six branches of First Priority will reopen on Monday as branches of SunTrust Bank. Depositors of the failed bank will automatically become depositors of SunTrust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. For the time being, however, customers of both banks should use their existing branches until SunTrust can fully integrate the deposit records of First Priority.

    Over the weekend, customers of First Priority can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

    As of June 30 2008, First Priority had total assets of $259 million and total deposits of $227 million. At the time of closing, there were approximately $13 million in uninsured deposits held in approximately 840 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

    Customers with accounts in excess of $100,000 should contact the FDIC toll free at 1-800-837-0215 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. EDT; on Saturday from 8:00 a.m. to 8:00 p.m. EDT; and on Sunday and thereafter from 8:00 a.m. to 6:00 p.m. EDT.

    In addition to continued access to their insured deposits, depositors of First Priority with amounts exceeding the insurance limits will receive a payment of 50 percent of their uninsured balance from the FDIC as receiver. The FDIC will mail these payments directly to the customers early next week; the amounts will not appear in their account balances at SunTrust Bank.

    Customers who would like more information on today's transaction should visit the FDIC's Web site at Beginning Monday, depositors of First Priority with more than $100,000 at the bank may visit the FDIC's Web page, "Is My Account Fully Insured?" at to determine their insurance coverage

    SunTrust agreed to assume the insured deposits for no premium. In addition to assuming the failed bank's insured deposits, SunTrust Bank will purchase approximately $42 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and securities. The FDIC, however, entered into a separate agreement with LNV Corporation, Plano, Texas, to purchase $14 million in First Priority's assets. LNV Corporation is a subsidiary of Beal Bank Nevada, Las Vegas, Nevada. The FDIC will retain the remaining assets for later disposition.

    The cost to the FDIC's Deposit Insurance Fund is estimated to be $72 million. First Priority is the first bank to fail in Florida since Guaranty National Bank, Tallahassee, on March 12, 2004. This year, a total of eight FDIC-insured institutions have been closed.
  3. sprstpd


    Maybe we should be asking when SunTrust will go under.
  4. Customers with accounts in excess of $100,000 .........

    The old and innane.

    do a good deed, and tell your neighbors to be aware what we're up against. No need for anyone to lose money in such a stupid fashion.

    If they wanted to lose money stupid, they could trade.

    You know, this thread could eclipse the joke thread in both content and length.
  5. The question is who will be on the FDIC Press Release list next Friday and the Friday after that and after that.....