Video: IndyMac CEO Interview on CNBC

An interview on CNBC with IndyMac Bank CEO Michael Perry about company’s Option ARM mortgage portfolio and Federal Reserve’s decision to leave interest rates unchanged.

You get the sense that Indy Mac’s CEO has absolutely zero idea as to whats coming,

September 20, 2006:

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  1. Grodge commented on Jul 14

    When was that interview? Oil was at $60.

    To be fair, he doesn’t seem that out of touch: At that date, he was correct about the top in the housing market.

  2. john_doe commented on Jul 14

    what is interesting is the #s streaming @CNBC…. notice the DJI is appx where it is today… however the indexes peaked almost one year later to that date(9-20-07)… the indexes have returned to Sept. 2006 levels but oil is at $60, Gold @ 560… to me this means the indexes have a long way to go down ward…. I see DJI 9700 in the Fall IF oil does not retreat…. Jorge is a Fool… so much for his FREE market ideas…. Free to steal, kill and destroy by corp America… so he switches to ultra socialism…. when will Helicopter Ben drop some dollars over my house…. Greenspan gave truck loads of $$$$ to Saddam……

    $$$$ Sheik

  3. dukes commented on Jul 14

    You do have to wonder if these guys have no clue about the actual business they are in, or maybe they believed all of their new fangled models, or, most likely…they are just FULL of SHIT!

  4. Mr Mortgage commented on Jul 14

    did you hear how that dirtball changed around what she said and she had no clue.

    At that time nobody knew what ‘option arms’ were. She said all ‘arms’ were 66% and he said ‘you are wrong, we only have 25% option arms’. She never said ‘option arms’ in the first place’. He spun her good. They indeed did have 66% ARMs and 25% option arms.

    He also didnt mention that 50% of all option arm borrowers put 2nd mortgages behind it.

    Also, his spinning and being aware of option arms means he knew the risk going forward and chose to manage the stock price for the next two years and not the company.

  5. Chuck commented on Jul 14

    It’s about affordability and job creation in a terrible recession, it’s not about Arm’s or fixed rates, it’s about cutting principle to keep up with depreciation. Banks are going to get hammered any which way you look at it.

  6. Chuck commented on Jul 14

    It’s about affordability and job creation in a terrible recession, it’s not about Arm’s or fixed rates, it’s about cutting principle to keep up with depreciation. Banks are going to get hammered any which way you look at it.

  7. Andy Tabbo commented on Jul 14

    Great video.

    Any even better one, tho I cannot find it, is when Dylan Ratigan was interviewing the Ambac president on the floor of the NYSE in Oct 07 when the stock was first starting to crater hard. The Ambac chief said basically: “This is crazy. Our business is as fundamentally sound as ever. This move in our stock price is crazy.” (or something close that)

    Yeah. Sold to you.

    Wish we could find that video. It would be a classic right now.

    – AT

  8. Petes2cents commented on Jul 14

    Now that IndyMac is the first of many banks to fail, I think we’re going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that’s a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.

    I’m an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don’t think there going anywhere, but you never know. Investments are all risky.

    I never thought I would see this happen here in the USA, but here we are….let’s all cross our fingers.

    petes2cents.com

  9. Petes2cents commented on Jul 14

    Now that IndyMac is the first of many banks to fail, I think we’re going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that’s a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.

    I’m an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don’t think there going anywhere, but you never know. Investments are all risky.

    I never thought I would see this happen here in the USA, but here we are….let’s all cross our fingers.

    petes2cents.com

  10. Bonnie Ensor commented on Jul 14

    As a former Indy Mac employee, I watch this video with great sadness. It is interesting to hear that Countrywide CEO Angelo Mozilo was voicing to MSNBC there would be a hard landing, yet his company went down BEFORE Indy Mac and it was bailed out by BOFA.

    Seems to me the Congressional groups who were chatting it up with Mozilo should watch this if they haven’t already seen it.

    Not to fry Mike, but to ask WHY Mozilo didn’t take action if he believed there was GREAT RISK from the option arms and in the mortgage market to cause A HARD LANDING/POSSIBLE COLLAPSE.

    The CEOs of BOTH companies were the ones calling the shots. They are the most accountable for both implosions of two top ten lenders.

    I am hearing the new CEO of Indy Mac Federal Bank saying the underwriters were to blame. The blame game starts at the TOP of both Countrywide and Indy Mac for not stopping the option arms sooner and for not stopping NO doc, NINAs, No Asset, stated loan programs sooner.

    The underwriters had no control over the programs that were coming from top down.

    The underwriters in my division WERE questioning the wisdom of these programs. We were told as long as the borrowers met the parameters, it was up to the borrowers to exercise discretion and refi themselves at a later date.

    Mike in all fairness could not forsee the equity in the homes crashing due to a foreclosure bubble.

    At the time of this interview, it was booming in the mortgage world. Gas prices were normal, gold was normal and there wasn’t a cloud in the sky.

    Unfortunately, there is a simple law of gravity EVERYONE FORGOT. WHAT GOES UP, MUST COME DOWN.

    The equity fell, the borrowers defaulted and the banks had no money to lend anyone else. Very simple pancake effect.

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