Saturday, July 12, 2008

Key US mortgage lender, IndyMac Bank, goes bust...

One of the largest US mortgage lenders, the California-based IndyMac Bank, has collapsed amid a growing credit crisis. 

Federal regulators seized the bank's assets, fearing it might not be able to meet withdrawals by depositors. 

It is the second-largest financial institution to fail in US history, regulators say. 

The failure came on a day when shares in the two biggest US home loan institutions - Freddie Mac and Fannie Mae - fell at one stage by almost 50%. 

IndyMac had been struggling to raise funds and stay in business in one of the states worst hit by the US housing market slump. 

The bank's primary regulator, the Office of Thrift Supervision (OTS), said depositors had withdrawn more than $1.3bn in the past 11 days. 

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

See also: Sub-prime woes force UBS changes...

And this: British town Lewes to create its own currency...

And this: The Bank, the Customer, his Wife and ... Termites!

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