IndyMac will cover 50% of uninsured deposits as IndyMac Federal Bank.

The government is stepping in to support IndyMac. Having just changed its name from IndyMac Bancorp after it was seized Friday. The FDIC has assumed control saying it will cover 50% of uninsured deposits and fully insure all up to $100,000, which is normal.

John Bovenzi, the FDIC COO says there’s probably no bank in the country that has access to greater capital and liquidity than Indymac Federal Bank. He also states the FDIC expects to sell it in the next 90 days.

Because Charles Schumer has loose lips, IndyMac Bancorp became the second biggest federally insured financial company to be taken over by regulators.

Two days after the Federal Deposit Insurance Company took over California based IndyMac Bancorp Inc, officials say the bank will reopen Monday morning (Today) for business as usual.

One company in the news is IndyMac.

It heated up again yesterday, they are blaming comments from Senator Charles Schumer for big withdrawals and now the Senator is firing back saying they were on the rocks anyway.

Everyone questions that statement by Schumer, this is a big bank, $18 billion deposits.

What is the FDIC doing about this?

The Federal Reserve is currently reviewing regulations that impose limits on how much investment firms can invest in banks, looking to see if they can make it easier for banks to raise capital.

Is this necessary? Rules were put in place to avoid large Industrial Loan Corporations from controlling banks and the availability of credit. Why would a private equity firms be different?

The European Central Bank’s president is playing down prospects of further interest rate increases. They raised their benchmark lending rate to 4.25%.

“The monetary policies stance after today’s decision, contributes to achieving our objective of price stability. We are never pre committed. It is a constant feature of our monetary policy. We do what is necessary to deliver price stability in the medium term and be credible and that delivery. Thursday’s 0.25% increase will help bring inflation back below 2%. We saw the little bit of a rebound, but that was chili weakness for the zero after this decision”.

With the US off for the July 4 holiday, he really is damping down prospects of further interest  rate increases. Traders took that as a bad sign, by selling the Euro down to a one week low against the dollar.

Nobody much likes the pound because of the UK subprime crisis. The pound has really suffered. They are finding it an excuse to perhaps get back in at some kind of level.What is the general view on the yen? They are saying that it could push stronger. There are some concerns about subprime. Even though the economic news is bad and there is some inflation, they are saying that the yen can be stronger as the dollar is in a general downward spiral. Nobody is betting against that quite yet.

Homeowners file a class action lawsuit in a $60 Million Mortgage Fraud case from Maryland, Washington DC and Virginia.

The U.S. Justice Department says more than 400 real estate brokers have been arrested since March, including dozens over the last two days, in a crackdown on Mortgage Fraud that has contributed to America’s housing crisis.

Fed Funds Implied Probability

Ben Bernanke says US Monetary Policy is ‘well positioned’; Wachovia fell for second day after ousting CEO Kennedy Thompson; Analysis by Mark Howard, Barclays Capital Head of Credit Analysis.

Shakeups at Washington Mutual and Wachovia. Roundtable Discussion with Andrew Seibert of Nextier Wealth Management and Forbes CEO Steve Forbes.

Washington Mutual shares are down after Kerry Killinger stepped down as chairman. Shares of Wachovia are falling below it’s lowest value in almost 13 years after Ken Thompson was ousted.

Chairman Lanty Smith has been appointed interim CEO. Is this new management what these companies need to get back on track? Are there more troubles for financials?

I think their values will go lower until they get a feel for who will take over. There are probably more Writedowns to come.

These banks have not gone beyond the problem of the Subprime Mortgage Industry and there is possibly another shoe to fall.

If the Credit Deterioration continues, there will be many more problems.

Wachovia has big news today. Shares of falling in the premarket after the company ousted CEO Ken Thompson.

Wachovia stated he is stepping down at the request of the board, saying no single precipitating event calls because the board to reach the decision, but a series of previously disclosed disappointments and setbacks cumulatively have negatively impacted the company and performance. Perhaps you can call it an understatement.

Shares down 57% in the past 12 months.