Oh, gee, we didn't see this coming. Toxic lender IndyMac reports loss five times higher than projected

Sarbanes-Oxley? SEC investigation?

Jailtime for cocky lying CEO Michael Perry?

Remember the last call when they didn't come clean, and said Alt-A would be fine? Lies. Bald-faced lies. Damn, my IndyMac puts covered before they came clean. But rest assured, this pig is done - going to zero. They were called "liar's loans" for a reason folks. And they ain't gettin' paid back. And IndyMac knew that.

IndyMac loss dwarfs own forecast

NEW YORK (Reuters) - IndyMac Bancorp Inc (NYSE:IMB - News), one of the largest independent U.S. mortgage lenders, posted a quarterly loss on Tuesday that was more than five times larger than it had projected, hurt by mounting delinquencies and a collapse in demand to buy its home loans.

The parent of IndyMac Bank, one of the largest U.S. savings and loans, halved its dividend and said another cut is possible if it loses more money. It also quadrupled its reserves for bad loans.

"It's going to be a tough year, year and a half," Chief Executive Michael Perry said on a conference call.

IndyMac used to specialize in "Alt-A" home loans, which often go to people who can't fully document income or assets.

Angelo Mozilo has sold $355,658,743 in Countrywide Mortgage stock, selling even as Countrywide was buying shares on the open market. Hmmmmm......

The worst part of Angelo's insider dumping is that while he was dumping, as CEO he directed the company to (get this) BUY CFC shares on the open market to keep the price propped up, under the guise that it was "in the best interest of shareholders" to buy back shares (using debt).

Uh, Angelo, bad news, but buying CFC shares on the open market was THE SINGLE WORST THING YOU COULD HAVE DONE FOR SHAREHOLDERS.

From the July 28 CFC call after being questioned on dumping while CFC was buying:

Angelo Mozilo: Yes, well, if you think like that it's -- I don't think like that. The buybacks were done because we thought it was in the best interest of shareholders.

The decision to buy back stock is a collective decision, really emanates from the financial operations of the Company as to what is the best return for the investment of the shareholders, invested capital for the shareholders. So it is totally unrelated to any of my issues relative to the sale of stock.


Disclaimer: F*ck yes I'm short CFC. Just like Angelo, I have no confidence in CFC's ability to continue as a going concern.

HousingPANIC's "Angelo Mozilo Stupid Quote of the Day"

``It was impossible to anticipate the credit crisis we've seen on a worldwide basis"

- Countrywide's Angelo Mozilo, after dumping $425,000,000 of CFC shares, either lying, or who must not have had access to HP, Contrarian Chronicles, Peter Schiff, Robert Shiller, The Economist or hundreds of other sources who predicted EXACTLY what we're seeing today.

(Yes, I'm short CFC, and thanks to an HP'er for the new Mozilo get-up!)

FLASH: And today, for all the world to see (including the SEC), we see why Countrywide Mortgage's Angelo Mozilo was dumping shares like rotten oranges

I hope some of you were short Countrywide. HP'ers saw this car crash coming a mile away. Next up - IndyMac.

Yes, I'm short IMB and CFC, and it was all so obvious now. Mozilo is laughing all the way to the bank, but we all know you can't take your money to jail... Good luck Orange Man with the gotta-be-coming-soon SEC investigation.

Countrywide quarterly profit tumbles; shares off 7%
Subprime problems spread to top-rated mortgages, lender says

NEW YORK (MarketWatch) -- Countrywide Financial Corp. reported a 33% drop in second-quarter net income on Tuesday and signaled that problems in the subprime mortgage market have spread to the highest-quality home loans.

The warning pushed Countrywide shares down more than 7%, to their lowest level in almost two years. It also weighed on the broader stock market because investors have been waiting to see if credit problems in the subprime-mortgage sector would spill over into higher-rated, or "prime" home loans.

"The company incurred increased credit-related costs in the quarter, primarily related to its investments in prime home-equity loans," CEO Angelo Mozilo said in a press release detailing Countrywide's second-quarter financial results.

Countrywide's second-quarter net income fell 33% to $485 million, or 81 cents a share, down from $722 million, or $1.15 a share, earned a year earlier, on softening home prices.

Further dampening enthusiasm, Mozilo commented: "During the quarter, softening home prices continued to affect many areas of the country and delinquencies and defaults continued to rise across all mortgage product categories as a result."