Senator Schumer would have been referring to a little over billion in brokered deposits.
While the breakout of maturities of these deposits is not known exactly, a simple averaging would have put the threat of brokered deposits loss to Indy Mac at 0 million a month, had the regulator disallowed Indy Mac from acquiring new brokered deposits on June 30.
The FDIC kept some of the assets and liabilities that it could not sell in a holding entity known as Indy Mac Federal Bank, which would be slowly wound down.as a means of collateralizing Countrywide Financial loans too big to be sold to Freddie Mac and Fannie Mae.Indy Mac Bancorp, a holding company headquartered in Pasadena, California, eventually acquired: The primary causes of Indy Mac’s failure were largely associated with its business strategy of originating and securitizing Alt-A loans on a large scale.This strategy resulted in rapid growth and a high concentration of risky assets.It was heavily involved in Alt-A mortgages and reverse mortgages which in part resulted in its dramatic rise and has been suggested as the cause for its demise as large number of these questionable loans failed during the US subprime mortgage crisis of 2007-2009.
The FDIC put the assets up for auction and the bulk of the business was sold to IMB Hold Co LLC who turned this into One West Bank.Indy Mac, a contraction of Independent National Mortgage Corporation, was an American bank based in California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation (FDIC).Before its failure, Indy Mac Bank was the largest savings and loan association in the Los Angeles area and the seventh largest mortgage originator in the United States.In 1997, Countrywide spun off Indy Mac as an independent company run by Mike Perry, who remained its CEO until the downfall of the bank in July 2008."Mac" is an established contraction for "Mortgage Corporation", usually associated with Government sponsored entities such as "Freddie Mac" (Federal Home Loan Mortgage Corporation) and "Farmer Mac" (Federal Agricultural Mortgage Corporation).Dividends on common shares had already been suspended for the first quarter of 2008, after being cut in half the previous quarter.