When home prices declined in the latter half of 2007 and the secondary mortgage market collapsed, IndyMac was forced to hold $10.7 billion of loans it could not sell in the secondary market. Its reduced liquidity was further exacerbated in late June 2008 when account holders withdrew $1.55 billion or about 7.5% of IndyMac's deposits. This “run” on the thrift followed the public release of a letter from Senator Charles Schumer to the FDIC and OTS. The letter outlined the Senator’s concerns with IndyMac. While the run was a contributing factor in the timing of IndyMac’s demise, the underlying cause of the failure was the unsafe and unsound manner in which the thrift was operated. COUNT 5
QSN1 How much in deposits did account holders withdraw from IndyMac in late June 2008? ANS1 $1.55 billion QSN2 What percent of IndyMac's deposits were withdrawn by account holders in late June 2008? ANS2 7.5% QSN3 What was the value of loans IndyMac was forced to hold when the secondary mortgage market collapsed in late 2007? ANS3 $10.7 billion QSN4 Who is the Senator that released a letter to the FDIC and OTS that prompted a "run" on IndyMac? ANS4 Charles Schumer QSN5 What was the underlying cause of the failure on IndyMac? ANS5 unsafe and unsound manner in which the thrift was operated