IndyMac; Office Depot; Merrill Lynch
Office Depot announced that it expects North American retail same-stores slipped 10% from last year, citing the sluggish economic environment. Shares down 33% on the news.
Pots call kettles black... Merrill Lynch had its Q2 earnings estimates cut at Wachovia, noting Merrill's CDO and bond insurer exposure.
IndyMac stock fell 42% so far today, the second-largest independent U.S. mortgage lender last year behind Countrywide...
lost almost $900 million in the nine months ended in March.
The Alt-A lender said it could not successfully raise new capital, and that regulators said the firm is no longer well capitalized.
IndyMac's operating liquidity was about $1.7 billion. The lender will slash its workforce by 53% to 3,400 employees and has terminated loan origination operations.
IndyMac bank depositors in a bank run, have withdrawn over $100 million since last week.
The firm, which had a market value of $3.4 billion in mid-2006, lost more than 95% in the past year.
Jason Arnold, analyst at RBC Capital Markets:
"IndyMac was one of the banks that was using relatively weak underwriting standards on the basis that housing prices would continue to rise in value.
With prices coming down, that became the bottom card in the house of cards built by these lenders.
We don't expect, given the really rough state of the housing market, that IndyMac is going to be able to get out of this.
The big problem is that no one will give them money. There's too much risk involved and not enough value in their franchise."
Pots call kettles black... Merrill Lynch had its Q2 earnings estimates cut at Wachovia, noting Merrill's CDO and bond insurer exposure.
IndyMac stock fell 42% so far today, the second-largest independent U.S. mortgage lender last year behind Countrywide...
lost almost $900 million in the nine months ended in March.
The Alt-A lender said it could not successfully raise new capital, and that regulators said the firm is no longer well capitalized.
IndyMac's operating liquidity was about $1.7 billion. The lender will slash its workforce by 53% to 3,400 employees and has terminated loan origination operations.
IndyMac bank depositors in a bank run, have withdrawn over $100 million since last week.
The firm, which had a market value of $3.4 billion in mid-2006, lost more than 95% in the past year.
Jason Arnold, analyst at RBC Capital Markets:
"IndyMac was one of the banks that was using relatively weak underwriting standards on the basis that housing prices would continue to rise in value.
With prices coming down, that became the bottom card in the house of cards built by these lenders.
We don't expect, given the really rough state of the housing market, that IndyMac is going to be able to get out of this.
The big problem is that no one will give them money. There's too much risk involved and not enough value in their franchise."
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