Indymac Bank, the largest independent mortgage provider (a title formerly held by Countrywide until it failed into the arms of Bank of America), was seized Friday by federal regulators. The bank held about $32 billion in assets, although its anyone's guess what those might be worth these days. The Federal Deposit Insurance Corp will run the bank, promising to have it open for business on Monday. The Journal says the cost of the bank failure will be between $4 billion and $8 billion.
Weirdly, the same finger prints that were found on the corpse of Countrywide are all over this collapse of a large mortgage bank. That's right. Meet the founder of Indymac, Angelo Mozilo. Back in Mozilo, the former chief executive of Countrywide, and David Loeb, a founder of Countrywide, founded Indymac. Mozilo left in 2000. Someone please tell us there's not a third huge home lender founded by the toxic duo.
Crisis Deepens as Big Bank Fails [Wall Street Journal]