Local IndyMac layoffs reach 128
IndyMac Federal Bank has let go 128 employees from its offices in Rancho Cordova, a figure 70 percent higher than previously reported.
Many of the employees have been off work since July, when federal regulators took control of failed IndyMac Bancorp Inc. Some employees were able to work through Friday, closing out files and shutting down the office.
Based on numbers provided by the bank to the Business Journal in August, that would leave about 60 people in Greater Sacramento employed by IndyMac’s Financial Freedom reverse mortgage subsidiary.
The bank had previously said it had 188 workers here and would lay off 75 lending employees in Greater Sacramento, but would retain 113 at Financial Freedom.
Pasadena-based IndyMac at its peak was a $32 billion-asset bank that made most of its money selling Alt-A mortgages. Those loans were generally to people with good credit history, but who chose not to verify their income.
The bank's loan portfolio started showing difficulties at the end of last year, and they only got worse through 2008. The collapse of IndyMac shuttered 150 loan offices, nine wholesale divisions and four loan centers at the cost of 3,800 jobs.
When the Federal Deposit Insurance Corp. took over the operation in July, it created a bridge bank, IndyMac Federal Bank, to operate the banking functions of the former company and to position it for sale.
It still has three core businesses — its home loan servicing operation, its 33-branch retail bank in Southern California and Financial Freedom — that the FDIC is marketing for sale with Lehman Brothers Holdings Inc.
Many of the employees have been off work since July, when federal regulators took control of failed IndyMac Bancorp Inc. Some employees were able to work through Friday, closing out files and shutting down the office.
Based on numbers provided by the bank to the Business Journal in August, that would leave about 60 people in Greater Sacramento employed by IndyMac’s Financial Freedom reverse mortgage subsidiary.
The bank had previously said it had 188 workers here and would lay off 75 lending employees in Greater Sacramento, but would retain 113 at Financial Freedom.
Pasadena-based IndyMac at its peak was a $32 billion-asset bank that made most of its money selling Alt-A mortgages. Those loans were generally to people with good credit history, but who chose not to verify their income.
The bank's loan portfolio started showing difficulties at the end of last year, and they only got worse through 2008. The collapse of IndyMac shuttered 150 loan offices, nine wholesale divisions and four loan centers at the cost of 3,800 jobs.
When the Federal Deposit Insurance Corp. took over the operation in July, it created a bridge bank, IndyMac Federal Bank, to operate the banking functions of the former company and to position it for sale.
It still has three core businesses — its home loan servicing operation, its 33-branch retail bank in Southern California and Financial Freedom — that the FDIC is marketing for sale with Lehman Brothers Holdings Inc.
Labels: IndyMac Bancorp, layoffs
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