IndyMac Predicts 2008 Losses
One of the nation's biggest mortgage lenders says it will not have a profitable quarter this year. IndyMac Bancorp, based in Los Angeles, reported a $184.2 million loss in the first quarter of the year. One year ago, the company turned a profit of $52.4 million.
Mortgage-based securities and their decline in value made the company unprofitable last quarter. IndyMac also lost money when it had to discontinue all loans by its construction lending division last year as home building dried up. To help turn things around, IndyMac says it will save $7.4 million a quarter by no longer paying dividends on preferred shares of its stock.
Reader Comments
IndyMac should have been closed down a long time ago!
I used to bank with IndyMac. But only lasted for 3 months. I had to close my accounts because IndyMac convinced me, through their low quality of service and serious lack of professionalism, that they did not deserve my business.
Thus, it's no surprise to me that IndyMac got its operation shut down by the FDIC. There is something about ethics and professionalism that those people at IndyMac should have learned. Many of them are on the street today because of their bad attitudes and poor customer service. I don't feel sorry for these people.
Bad practice yields bad results
IndyMac gets what it deserves. For years IndyMac has been offering very bad customer service. That is beside their shady core business philosophy. The quality of the employees have been of "sub-prime" level. I am glad to see "what-goes-around-comes-around" works in this case.
BANKRUPTCY
iS IMB NEAR BANKRUPSEY?
Add your thoughts
All comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.advertisement
