The Failure of Indy Mac Bank With Respect to Housing Bubble of 2008 Free Essay Example, 2000 words

The stock prices of Indy Mac had dropped almost over 95 per cent within these two years, and the market capitalization reduced about $3.5 billion. This increasing level of Alt-A and subprime mortgage were the indicators that the crisis had moved on beyond the control of the weak borrowers. In this situation, the securitization market also failed or collapsed. So this closed Indy Mac s options to get its bad loans off its records (Federal Deposit Insurance Corporation Failed Bank Information ).The Chairman of Indy Mac Bank was Steven Mnuchin, and the CEO was Joseph Otting. The non-employee directors of the bank who were included in the board of directors of the company were paid an annual remuneration of $50,000. The non-employee directors who were the part of the audit committee received $20,000 as remuneration. Apart from this, the presiding director received an additional $20,000. These non-employee directors were exclusively on the board of the bank. All the other reimbursements and requirements of the directors were paid from the account of Indy Mac Bank. The non-employee directors received $2,500 as fees to attend the board meeting of Indy Mac Bank. We will write a custom essay sample on The Failure of Indy Mac Bank With Respect to Housing Bubble of 2008 or any topic specifically for you Only $17.96 $11.86/page