Indymac Says "No Bids On Its Mortgage Loan Portfolio"

Mish's Global Economic Trend Analysis: Indymac Says "No Bids On Its Mortgage Loan Portfolio":
Indymac has been notified that it is no longer considered a 'well capitalized bank'. A Stakeholder Letter' posted on Indymac's Corporate Blog describes the grim situation.

As we stated in our financial update on May 12, 2008, we have been working with our investment bankers to raise additional capital. To-date, we have not been successful with these efforts, and, while we will continue these efforts with our bankers and others, we don’t expect to be able to raise capital until there is more stability and less uncertainty in the housing and mortgage markets."

IndyMac specialized in so-called Alt-A mortgages that usually didn't required borrowers to provide documentation on their incomes.

Alt-A was riskier ``than the subprime loans because at least with subprime, you knew you were lending to someone who has a bad credit record,'' said Christopher Thornberg, a principal at Beacon Economics in Los Angeles


IndyMac, the second-largest independent U.S. mortgage lender last year behind Countrywide Financial Corp., lost almost $900 million in the nine months ended in March.