Indymac Bancorp fails. What next?

As many of you already know, and some have followed intensely throughout the week, Indymac Bancorp, headquartered out of Pasadena, CA fail yesterday evening and was received into the arms of the FDIC. There were approximately 1 billion in uninsured deposits, held by 10,000 customers. They will get approximately half back over the weekend, through an advance dividend. The FDIC is working hard to make sure insured deposits are mediated in a timely manner so customers have access to funds immediately.

First, Bear Sterns fails. That didn't affect the day to day activities of, say pulling money out of your ATM card. Now, Indymac fails due to the asinine loans they piled on top. Interestingly enough, Indymac was starting by the same man who founded Countrywide, Angelo Mozilo...the apple doesn't fall to far from the tree now, does it?

But seriously, what next?

I'm sure you've seen the rumours that Fannie Mae and Freddie Mac are insolvent (according to a Fed president's comments a few days ago). Of course, current regulators were quick to counteract these comments, but didn't Democrat Schumer out of New York say that he was 'concerned' about Indymac potentially failing due to their extremely poor lending standards? And, he was dead on target. But, after these comments, fed regulators were quick to tell the democrat to mind his own business, and basically quit trying to warn the public ahead of time.

Ultimately, look for Fanne and Freddie to get a huge accounting standards exemption, so they don't have to fully disclose the entirety of their mortgages on their balance sheet. If this doesn't happen, they will go the way of the Mac.

Additionally, Lehman will likely fail if it doesn't get a generous dosage of Sovereign Wealth Funding...or some more fed stimulization.

After that, it could be Wachovia, if they don't clean up their absurd Option Arm portfolio.

It's going to be bigger than we think, a longer and deeper prolonged pain due to our poor, greedy, and foolish lending practices. The fall will be prolonged and hard. Then, a new set of regulators and lenders will take the reins. Would to God that they actually concern themselves with the validity of their lending standards and the livelihood of their customers.

But we can only wait and watch. What do I know? I don't have any insignia behind my name, like CPA, MBA, JD, BS, etc...