Business
IndyMac cuts back lending, staff
Pasadena, Calif. | July 08, 2008 12:01:13 AM IST
IndyMac Bancorp of Pasadena, Calif., announced Monday it will substantially cut back its home mortgage lending and slash its workforce of 7,200 by about half. The savings and loan said it was taking the steps after federal regulators removed it from a listing of well-capitalized banks, the Los Angeles Times reported. IndyMac reported a $184 million loss in the first quarter of 2008 and said it would report a bigger loss in the second quarter. The bank lost $615 million in 2007 -- the first annual loss in its 23-year history, the newspaper said. IndyMac, at one point, employed more than 10,000 people and was the second-largest mortgage company in the country. The company began cutting back operations late in 2006 when early warning signs indicated impending waves of defaults, the Times said. IndyMac Chief Executive Michael W. Perry Monday said attempts to raise capital through investment bankers had not been fruitful. The company said it would retain 3,400 workers after closing nine regional offices that made loans through independent brokers. It also said it would retain about 150 direct-to-customer retail offices in the West and Northeast. (UPI)
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