Friday, August 01, 2008

IndyMac Holding Company Files BK

by Tanta on 8/01/2008 09:19:00 AM

This is not helpful reporting:

Aug. 1 (Bloomberg) -- IndyMac Bancorp Inc., the second- largest U.S. independent mortgage lender before it was seized by federal bank regulators three weeks ago, filed to liquidate its remaining assets under bankruptcy protection.

IndyMac's liabilities are between $100 million and $500 million, according to the Chapter 7 filing yesterday in U.S. Bankruptcy Court in Los Angeles. The bank holding company said it has less than 50 creditors, which it didn't list.

IndyMac was seized by U.S. regulators on July 11 after a run by depositors left the mortgage lender strapped for cash. The Federal Deposit Insurance Corp. is running a successor institution, IndyMac Federal Bank, and regulators have said they intend to eventually sell the seized bank.

The FDIC ``has been in sole possession custody and control of all of the books and records of'' IndyMac Bancorp and the court filing was made without access to information that bankruptcy laws typically require, Chief Executive Officer Michael W. Perry said in court papers.

While banks are prohibited from filing for U.S. bankruptcy protection, bank holding companies aren't. Perry is Pasadena, California-based IndyMac Bancorp's sole remaining employee, according to the filing. The company has $50 million to $100 million in assets.
FDIC did not "seize" IndyMac Bancorp, it seized IndyMac Bank, F.S.B., which is owned by IndyMac Bancorp. Rather than continuing to write things that just sound contradictory, perhaps Bloomberg can help us understand the implications of this legally important distinction? I'm just askin' . . .