Statements

July 24, 2014 – Statement 292: “The rescue of incumbent investors in the government bailout of the largest U.S. banks in the autumn of 2008 has been widely viewed as unfair, as indeed it was in applying different rules to different players…

July 24, 2014 – Statement 291: “The status quo of implicit guarantees for money funds is unacceptable, just as it was for Fannie Mae and Freddie Mac in the decades leading up to the financial crisis.” SEC Commissioner Daniel Gallagher

July 24, 2014 – Statement 290: “At present, there are no federal laws that sufficiently protect lesbian, gay, bisexual and transgender (LGBT) workers from being fired simply because of who they are or who they love. American workers should be judged by one thing only: their ability to get the job done…

July 23, 2014 – Statement 289: “Mr. Blinder says that Fed policy has been working well, so a fix is unnecessary. But it has not been working well. Since the time the Fed deviated from the rules-based policy that had worked well in the 1980s and 1990s, we have had a financial crisis, a deep recession and a very disappointing recovery…

July 23, 2014 – Statement 288: “…Harvard researchers who examined a large sample of 2007 bankruptcy filings found that, “using a conservative definition, 62.1% of all bankruptcies…were medical.” That research, published in the American Journal of Medicine…

July 23, 2014 – Statement 287: “…for example, if someone took out a (FHA) loan 10 years ago, and maybe they got a $5,000 gift from their parents, well, technically, you’re supposed to get a gift letter from the parents. Well, let’s say we didn’t get the gift letter. The loan has been handled perfectly well for 10 years…

July 23, 2014 – Statement 286: “The average federal debt per household will soon exceed $140,000…Federal debt is now nine times greater than revenue legally available for debt service. The U.S. last maintained its debt at that high level in the 1790s.”, Bill White, Barrons

July 22, 2014 – Statement 285: “We have gone through two World Wars, the Great Depression, the Cuban trade embargo, smoking bans, excessive taxation and competition from low-wage countries. The toughest challenge of all these is the F.D.A. regulations.” Eric Newman, co-owner of the country’s oldest premium cigar business, founded in 1895, New York Times

July 22, 2014 – Statement 284: “In early July, Janet Yellen made an admirably clear statement that she is sticking faithfully to the Greenspan- Bernanke policy of extreme moral hazard. She will not use interest rates to head off or curtail any asset bubbles encouraged by the extremely low rates that might appear. And history is clear: very low rates absolutely will encourage extreme speculation…

July 22, 2014 – Statement 283: “Investors, seeking a higher return when interest rates are low, recently flocked to buy a bond issue from (subprime auto lender) Prestige Financial Services of Utah. Orders to invest in the $390 million debt deal were four times greater than the amount of available securities…

July 22, 2014 – Statement 282: “More than any other single individual in the U.S. financial system, (Fed Chair) Janet Yellen is in a position to see what is taking place in the economy and its financial markets…

July 21, 2014 – Statement 281: “Although the left’s narrative placed all blame on the private sector, these numbers show that private firms were responsible for less than a quarter of the problem. Yet Dodd-Frank said nothing about government housing policies and ignored Fannie and Freddie…

July 21, 2014 – Statement 280: “…none of these issues is an excuse to delay accountability. Children have only one chance for an education and every year in which that education falls short is another impediment to their success…

July 18, 2014 – Statement 279: “But it does amount to a government official (The Fed Chair and nation’s top economist) substituting her own judgment for that of the marketplace, the prices arrived at by thousands of buyers and sellers for an app maker or a leveraged loan…

July 17, 2014 – Statement 278: “Check out the California Supreme Court ruling below re. commissioned sales employees and overtime pay. Bad labor laws like this are another reason why companies are moving out of California. Commissioned employees’ hours-worked are almost impossible to track accurately and their only objective work-product is sales (of products and/or services)…

July 17, 2014 – Statement 277: “When (property rights) are threatened, or uncertain, the result is inefficiency, rent-seeking, a larger underground economy and capital flight…Ultimately, behind this and other attacks on property rights is the notion that the government owns all income, leaving to you only what it doesn’t demand…

July 17, 2014 – Statement 276: “Many monetary experts refer to the 2000 equity crash as a benign event. But the unemployment rate rose by 2½ percentage points after the decline, and the monetary policy response to that rise in unemployment contributed to the housing bubble and the 2008 financial crisis…

July 16, 2014 – Statement 275: “Ah…I’ll stop there because we’re running out of time, but I have to say, Chairman Yellen, I think the language in the statute (section 165 of Dodd-Frank requiring orderly liquidation plans for Too Big to Fail institutions) is pretty clear, that you are required, the Fed is required to call it every year on whether these institutions have a credible plan…

July 16, 2014 – Statement 274: “It’s certainly true that from a psychological standpoint, the Federal Reserve has induced the same sort of yield-seeking speculation that drove investors into mortgage securities (in hopes of a “pickup” over depressed Treasury-bill yields), fueled the housing bubble, and resulted in the deepest economic and financial collapse since the Great Depression…

July 16, 2014 – Statement 273: “Sound money and free markets go hand in hand…When (Fed monetary) policy became more ad hoc, interventionist and discretionary during the past decade, the economy deteriorated and we got a financial crisis, a Great Recession, and a not-so-great recovery…

July 16, 2014 – Statement 272: “The CFPB should only create programs to educate consumers about payday loans, pass regulations to ensure that lenders follow existing laws and prosecute businesses that don’t treat borrowers honestly. The Dodd-Frank law requires these actions, and no more. The CFPB wasn’t created to protect consumers from themselves…

July 15, 2014 – Statement 271: “Regulators have taken to warning that investors may be underestimating the risks still lurking in the euro zone – perverse given that central-bank policies have been explicitly designed to encourage investors to take such risks.”, Simon Nixon, WSJ

July 15, 2014 – Statement 270: “Most of (San Francisco) City College’s problems, however, remain unsolved…With no state leadership, and with boards and faculty unable to resolve their many differences, institutions like City College have achieved terrible results for students…

July 15, 2014 – Statement 269: “Our desire to artificially maintain our standard of living through massive public- and private-sector debt (currently 348% of GDP, not including our unfunded liabilities of Medicare, Social Security, prescription-drug program, et al.). We’ve seen dramatic monetary-based expansions…

July 15, 2014 – Statement 268: “When the federal government is good, it’s very, very good. When it’s bad (or at least deeply inefficient), it’s the norm. The evidence is abundant…

July 15, 2014 – Statement 267: “…Nobel Prize winner Milton Friedman’s scientific conclusions are in accordance with Mr. Volcker’s policy views. Mr. Volcker emphasizes that the “responsibility of the government is to have a stable currency,” period. By establishing a single rule, Fed authorities will have no need to determine the optimal mix of inflation and unemployment rates…”, Bertrand Horwitz

July 15, 2014 – Statement 266: “How we as a nation treat these refugee children fleeing for their lives will speak volumes about what we truly value. More than compassion or pity, what these kids need is for Congress and the president to exhibit the characteristic that unites us as Americans: a fundamental sense of fairness and due process…

July 15, 2014 – Statement 265: “…on Monday it (The Department of Justice) announced a civil settlement with Citigroup over failed mortgage investments that covers almost exactly the period when current Treasury Secretary Jack Lew oversaw divisions at Citi that presided over failed mortgage investments. Now, that’s funny…

July 10, 2014 – Statement 264: “…in vivid contrast to the Swiss central bank, which marks its investments to market, the Federal Reserve has designed its own regulatory accounting so that it will never have to recognize any losses on its $4 trillion portfolio of long-term bonds and mortgage securities…

July 10, 2014 – Statement 263: “The amounts here are absolutely staggering,” said Rep. John Mica, R-Fla. “It’s over $100 billion each of the last five years (self-estimates of improper payments by Federal agencies provided to Congress). That’s a staggering half a trillion dollars in improper payments.”, Associated Press

July 9, 2014 – Statement 262: “I won the lottery!!! I got a job as a firefighter with the Los Angeles Fire Department!!!”

July 8, 2014 – Statement 261: “Welcome to the Everything Boom – and, quite possibly, the Everything Bubble. Around the world, nearly every asset class is expensive by historical standards (and fundamentals). Stocks and bonds; emerging markets and advanced economies; urban office towers and Iowa farmland; you name it…

July 8, 2014 – Statement 260: “Washington is stuck because that serves its interests. Long laws and vague regulations amount to arbitrary power. The administration uses this power to buy off allies and to silence opponents…

July 7, 2014 – Statement 259: “To justify its position against granting discovery to plaintiffs, the government argues that disclosure of current and future plans for the conservatorship (of Fannie and Freddie) could be “disruptive to the housing market and to the nation’s economy.”…

July 7, 2014 – Statement 258: “Often…those against corporatism seem to favor the existence of large government-sponsored enterprises that fill a void left by the imperfection of the market. But the justification for these institutions usually goes beyond helping Americans, with supporters citing evidence that these institutions give money back to the Treasury…

July 7, 2014 – Statement 257: “Most of the investigations involve trumped-up charges of misleading job placement rates, which federal law requires for-profits – but not public and nonprofit colleges – to document and disclose. But here’s the rub: There’s no standard definition of “job placement.”, Wall Street Journal

July 7, 2014 – Statement 256: “Religious freedom was a founding principle of our republic…We now have unelected agencies of the government bullying the citizenry on a daily basis, even in our most private decisions.”, Susan Bryan, Hendersonville, N.C.

July 7, 2014 – Statement 255: “It began with $550 million loans in…2004-2005. Thereafter (Puerto Rico sovereign) borrowing, largely to finance…(deficits) took off. The Federal Reserve’s low interest policy and the appetite for triple-tax exempt debt (which throws off income that is free of federal, state and local tax) among municipal bond investors fed the frenzy.”, Wall Street Journal 

July 2, 2014 – Statement 254: “Thanks to 30-year fixed rate, government-guaranteed mortgages and government tax breaks for mortgage interest and capital gains, the largest institutional investors in the world can’t (financially) compete with individual American homebuyers…

July 2, 2014 – Statement 253: “Successful economic upward mobility requires steps – such as employment and education – that lead to a move to a better neighborhood. A better ZIP Code is the result, not the precursor, to a better life…

July 1, 2014 – Statement 252: “Stop Us Before We Kill Again: Central bankers warn the world about…central bankers.”, Wall Street Journal

June 30, 2014 – Statement 251: “Given the clear trajectory of U.S. (monetary) policy, the turmoil in emerging-market currency and bond markets over the past year should spur more effective collective action to defend the global financial system against future Fed-induced whiplash…

June 30, 2014 – Statement 250: “The overall, somewhat gloomy message from the central bankers was that the world is drunk on easy money and has already forgotten the lessons of recent years.”, New York Times

June 30, 2014 – Statement 249: “The narrative proceeds…to John Law, the 18th-century Scotsman who, as banker to the French court, gave quantitative easing a try 300 years before Ben Bernanke ran with the idea. Lots of paper credit is the thing, Law contended. Who needed gold? The experiment ended with exploding asset bubbles…

June 30, 2014 – Statement 248: “During my Wall Street days, the individual was never talked about.” (For example, patients often don’t know how much a procedure at a doctor’s office costs ahead of time.) “That’s why I felt we had to drive this revolution where an individual had more of a say in health care.” , Anne Wojcicki, CEO, 23andMe

June 30, 2014 – Statement 247: “If you’re self-employed, you’re hosed. If you just started a job, you’re hosed. If you get a bonus, you’re hosed. Just got a severance payment? Can’t count that. I don’t have to do a lot to be a lender. I just have to be normal. Banks have forgotten that (mortgage) loans are collateralized by the home itself.” William D. Dallas

June 27, 2014 – Statement 246: “From 2003 to 2005, however, the Fed kept interest rates lower than such a rules-based approach would imply. This contributed mightily to the housing bubble and the risk-taking search for yield…

June 27, 2014 – Statement 245: “In any event, the limitation upon the President’s appointment power is there not for the benefit of the Senate, but for the protection of the people; it should not be dependent on Senate action for its existence…

June 27, 2014 – Statement 244: “The average rate for such (subprime credit card) customers was 21.1% in the first quarter, up from 20.2% a year earlier, according to research firm CardHub.com. In contrast, the highest-quality borrowers paid 12.9% on average in the first quarter, virtually unchanged from a year earlier…

June 26, 2014 – Statement 243: “But as interest rates began their long fall, pension funds faced a dilemma. Staying heavily invested in bonds would force governments either to set aside more cash upfront or to cut pension promises. So instead, pension funds radically changed their investment strategies, embracing investments that produce higher returns but also involve more risk. This shift has replaced an explicit cost with a hidden one…

June 26, 2014 – Statement 242: “The American colonial slogan “No Taxation Without Representation” described our grievance with Britain and led to our Country’s founding. Shouldn’t the inverse also be true; “No Representation Without Taxation”? With Mississippi getting $3 from the federal government for every $1 they send in (a situation that has occurred for years), should its citizens continue to have voting representatives in Congress or is there some other way to address this flaw inherent in our beautiful U.S. democracy?”, Mike Perry

June 24, 2014 – Statement 241:  “On and on it went. Eight grueling years passed before we had our day in court. Even after a U.S. district court dismissed the case in 2010, ruling in our favor on all claims made by the SEC, the agency appealed. On May 30, 2014, our 12-year odyssey ended when a federal jury unanimously found in favor of every defendant and against the SEC…

June 24, 2014 – Statement 240: “(The “implicit guarantee”) describes a peculiar belief widely held before the financial crisis, that Fannie Mae and Freddie Mac would be rescued by the government if they fell into distress. Despite evidence that this idea enabled them to borrow at rates close to Treasury yields, government officials denied any such guarantee existed – right up until they rescued the two of them in 2008…

June 24, 2014 – Statement 239: “Check out this NY Times example of a Pay as You Earn program (PAYE) student loan…It’s negatively amortizing: the balance owed increases over time, because the payment required by the government does not cover the interest owed!!! Isn’t this similar to the pre-crisis, much-derided Option-Arm mortgage loans offered by the private sector…

June 23, 2014 – Statement 238: “A handful of Wall Street firms are much more vulnerable than their peers to a type of bank run (repo runs) seen during the financial crisis. Unfortunately for investors, the identity of these firms is a mystery…

June 20, 2014 – Statement 237: “The blatant discrimination that occurred here (by GE Capital) is unlawful and will not be tolerated,” said Jocelyn Samuels, the acting assistant attorney general for the Civil Rights Division…This kind of conduct has no place in the consumer financial marketplace,” said Richard Cordray, the (Consumer Financial Protection Bureau’s) director. “People deserve to be given clear information and they deserve to be treated fairly.”, Los Angeles Times

June 20, 2014 – Statement 236: “The aggregate wealth of U.S. households, including stocks and real-estate holdings, just hit a new high of $81.8 trillion. That’s more than $26 trillion in wealth added since 2009. No wonder most on Wall Street applaud the Fed’s unrelenting balance-sheet recovery strategy. It’s great news for those households and businesses with large asset holdings, high risk tolerances and easy access to credit. Yet it provides little solace for families and small businesses that must rely on their income statements to pay the bills…

June 19, 2014 – Statement 235: “But the antifat message went mainstream, and by the 1980s it was so embedded in modern medicine and nutrition that it became nearly impossible to challenge the consensus. Dr. Walter Willett, now the head of the department of nutrition at the Harvard School of Public Health, tells me that in the mid-1990s, he was sitting on a piece of contrary evidence that none of the leading American science journals would publish…

June 18, 2014 – Statement 234: “Driving the demand for this debt are the easy-money policies of the world’s major central banks, which has depressed yields on debt of wealthy nations…Many money managers consider Ecuador (who defaulted on $3.2 billion in 2008) and Kenya (their first-ever international bonds) to be “frontier” markets, a loosely defined term used to refer to countries that are a step below emerging markets…”. Wall Street Journal

June 17, 2014 – Statement 233: “Persistently low interest rates set by the BOE (Bank of England), alongside government policies intended to spur home buying, have sent prices soaring in the past year—especially in the past six months. The low rates and galloping prices, in turn, have encouraged buyers to take on ever-growing quantities of potentially destabilizing debt to afford a house…

June 17, 2014 – Statement 232: “Immigration is an economic issue. Fundamentally, it is about the movement of workers, entrepreneurs and consumers to locations where they can maximize the value of their labor, businesses and purchasing power…

June 17, 2014 – Statement 231: “Federal loan programs “encourage students to pursue any degree regardless of price,” Mr. Palacious says. Students can borrow cash directly from the feds through Stafford loans. Parents have an even easier line of credit: Under the federal Parent PLUS program, mom and dad can borrow up to the cost of tuition after a credit check. “People are sometimes mortgaging their homes on what their kids will do,” Mr. Palacios says…

June 17, 2014 – Statement 230: “The federal government is stepping up wage garnishment of student-loan borrowers who have defaulted, another lingering effect of the nation’s ballooning college debt. Just over 174,800 people who had defaulted on federal student loans saw the Education Department take some money out of at least one paycheck…

June 17, 2014 – Statement 229: “Lending to weaker companies on easy terms is becoming more and more common as investors’ appetite for higher-yielding debt grows stronger and the Federal Reserve keeps money flowing at ultralow rates. Since the financial crisis, companies have been able to borrow more without offering investors what were once considered standard protections against possible losses…

June 17, 2014 – Statement 228:  “In America, what is holding back entrepreneurs from using digital technology to re-invent consumer banking and finance, including mortgage banking, is federal deposit insurance, federally-guaranteed mortgages, student loans (and other loans), the Fed’s manipulation of market rates, and the Consumer Financial Protection Bureau. Digital financial entrepreneurs can’t compete on a level playing field with the government subsidies provided to Too Big to Fail Banks, Fannie, Freddie, and FHA…

June 16, 2014 – Statement 227: “…the frequency and breadth of the Ninth’s Circuit’s defeats (10 of 11 cases before the Supreme Court this term and 8 of 10 of these defeats were unanimous!!!) suggest that many of its 29 active judges are willfully ignoring precedent and law to do as they please…”, Wall Street Journal

June 12, 2014 – Statement 226: “We can all recite a rather long list of culprits contributing to the financial crisis. What I want to raise is what seems to be a neglected question. Has the absence of a well-functioning international monetary system been an enabling (or instigating) condition? Did the absence of international oversight, of discipline in financing, of exchange rate management permit…even encourage…unsustainable imbalances in international payments and in domestic economies to persist too long?”, Paul A. Volcker

June 11, 2014 – Statement 225: “History provides ample evidence that when allowed to function properly free market capitalism generates massive national prosperity with high employment, a strong currency and rising standards of living. It is only when the state manipulates and over regulates free markets that capitalism fails. However, capitalism usually takes the blame for the failures of statism.” John Browne, Euro Pacific Capital

June 10, 2014 – Statement 224: “Housing experts advise on market comparables/values and whether you qualify for a mortgage and terms, but are silent on what should be your most important financial question: Is this home purchase (with this mortgage) likely to be a good investment for me? After our national housing bubble/bust, it seems wrong that no one: not your Realtor, not your mortgage lender, and not your appraiser (Consumer Financial Protection Bureau where are you?) even attempts to answer this question…

June 10, 2014 – Statement 223: “Beginning July 1, lenders will no longer have to perform an analysis of cash flow or debt-service coverage on loans of $350,000 or less, provided business owners meet the agency’s credit standards. Eliminating the two requirements is expected to cut the time needed to originate a small-dollar loan by as much as 50%, SBA officials say…

June 9, 2014 – Statement 222: “Taken together, both international and U.S. evidence reveals a strong pattern: Economic disasters are almost always preceded by a large increase in household debt. In fact the correlation is so robust that it is as close to an empirical law as it gets in macroeconomics. Further, larger increases in household debt and economic disasters seemed to be linked  by a collapse in spending…

June 9, 2014 – Statement 221: “WSJ Money: What lessons should people draw about their own finances, based on what we’ve just been through? Timothy Geithner: The basic lesson is you have to be careful with how much you borrow relative to your income and the value of your house or assets. You want to live with a greater cushion against the unknown…

June 6, 2014 – Statement 220: “The longer [very low inflation] lasts, the higher are the risks,” Mr. Draghi (ECB President) said at a news conference. “That is what we are reacting to.”, The Wall Street Journal, June 6, 2014

June 6, 2014 – Statement 219: “Credit unions in search of higher returns are loosening lending standards and piling into longer-term assets, exposing the firms to potentially significant losses if interest rates rise and worrying regulators in the process.”, Wall Street Journal

June 6, 2014 – Statement 218: “As a presidential candidate in 2007, Obama rightly suggested that the Bush administration’s use of signing statements was “a clear abuse of power [designed] to evade laws that the president does not like or as an end run around provisions designed to foster accountability.” Obama promised that, if elected president, he “[would] not use signing statements to nullify or undermine congressional instructions…

June 6, 2014 – Statement 217: “If anything, the report suggests that the army unit’s lack of security and discipline was as much to blame for the disappearance, given the sergeant’s history.” New York Times OpEd, June 6, 2014

June 5, 2014 – Statement 216: “It is a problem of their (the Fed’s) own making. They can’t have it both ways,” said Martin Barnes, chief economist at BCA Research. “If they want to sustain zero interest rates and push up asset prices, how can they expect to have that with no excesses and no risk taking?”, Wall Street Journal

June 4, 2014 – Statement 215: “In the 2012 presidential race, according to Federal Election Commission data, 96% of all campaign contributions from Ivy League faculty and employees went to Barack Obama. Ninety-six percent. There was more disagreement among the old Soviet Politburo than there is among Ivy League donors…

June 4, 2014 – Statement 214: “…Government never will be able to satisfy demand for a valuable service given away free or nearly free…If a private hospital operator in a competitive market saw wait times growing, it would raise prices to maximize profits, which would have the effect of reducing demand. Another hospital, seeing this, might keep prices low to fill empty beds…

June 3, 2014 – Statement 213: “Combine a 30-year, fixed-rate, first mortgage, with an interest-only home equity line of credit (a major product of the Too Big To Fail Banks) and you have economically created a synthetic version of the much-derided (and banned by regulators) Option-Arm mortgage!!!”, Mike Perry

June 2, 2014 – Statement 212: “This process has been what central banks have been seeking: Squeeze out any return from risk-free assets, and force investors into riskier ones. The lowering of risk premiums on equities and nongovernment bonds has boosted asset prices. Viewed alternatively, the rise in asset prices spurred by monetary authorities has pulled future returns forward…

June 2, 2014 – Statement 211: “…a key harm resulting from many programs is “government-promoted moral hazard,” in which public policies encourage people to engage in risky behavior, often causing immense collateral damage. The federal government’s promotion of home-ownership via Fannie Mae (ticker: FNMA) and Freddie Mac (FMCC), essentially government agencies, helped bring “catastrophic damage to the larger economy”…

May 28, 2014 – Statement 210: “The confusion here may lie with HUD itself, as it appears to stem from a mortgagee letter HUD issued in 2008 that would have limited lenders’ ability to accept less than the full mortgage balance as payment from family members or heirs. HUD rescinded that letter in 2011 and stated at the time that it would issue a replacement letter, but has yet to do so.”

May 28, 2014 – Statement 209: “The excess profits companies can extract from their customers when they face little or no competition – known to economists as “rents” – may be deepening income inequality, Professor Stiglitz and others have argued. The evidence shows up in fatter corporate bottom lines and a rising share of national income that goes to profits…

May 28, 2014 – Statement 208: “Who wants an index fund that yields 2%?” said Jeffrey Gundlach, whose Total Return Bond Fund at DoubleLine Capital LP has $32.1 billion under management, up 10 times from its start four years ago. Mr. Gundlach, in an interview, said investors “want exposure to these high-yield and distressed securities and they’ve become comfortable with what we’re doing.”…

May 28, 2014 – Statement 207: “Those who perform these vital services (feeding, clothing, and sheltering their fellow citizens) are activated by the incentives of the marketplace, perhaps even by “greed,” another fashionable buzzword that puts the anointed and the benighted on different moral planes…

May 28, 2014 – Statement 206: “The federal government runs two giant health-care programs…Medicare is provided by private physicians and other providers. Its finances are a mess, but the care that seniors receive is by and large outstanding. The VA health-care system is run by a centrally controlled federal bureaucracy. Ultimately, that is the source of the poor care veterans receive…

May 27, 2014 – Statement 205: “From the bare facts of the American financial crisis, many different narratives have already been spun. They can be classified by whom they blame: Wall Street bankers, feckless American debtors, government incompetence, the Chinese. “The fundamental causes of this crisis were familiar and straightforward,” Geithner writes. “It began with a mania…

May 27, 2014 – Statement 204: “They (the S.E.C.) are an administrative agency that is holding up this process because they are demanding unconstitutional new powers,” Chris Calabrese, legislative counsel, American Civil Liberties Union…

May 23, 2014 – Statement 203: “The spread of the free market has undoubtedly led to a tremendous increase in overall wealth and well-being around the world…Yet the answer to problems with the free market is not to reject economic liberty in favor of government control. The church has consistently rejected coercive systems of socialism and collectivism, because they violate inherent human rights to economic freedom and private property…

May 22, 2014 – Statement 202: “Intuitively, an accurate forecast is more likely to have been made by a forecaster who has better judgment and is better able to evaluate the situation. Here we argue that there is a simple reason why this intuition may be wrong. Rather than being an indication of good judgment, accurately forecasting a rare event…may in fact be an indication of poor judgment…

May 21, 2014 – Statement 201: “The initial investment thesis was to invest in these homes, make a nice return on the way, and be positioned to sell them for a nice profit,” said Gary Beasley, co-CEO of Starwood Waypoint Residential Trust, one of four public companies in the business…

May 21, 2014 – Statement 200: “Money illusion occurs when people think in terms of nominal values rather than real values – meaning, they consider the face value of money instead of its actual purchasing power. In other words, homeowners who sell their home for a higher dollar amount than what they bought it for see themselves as coming out ahead—even if inflation eats the gains…

May 20, 2014 – Statement 199: “…thanks to a 1993 Supreme Court decision, homeowners saddled with mortgage debt on their primary residences have not been able to take refuge in the bankruptcy courts. The unanimous ruling by the court found that when Congress rewrote the bankruptcy code in 1978, it specifically gave “favorable treatment” to mortgage lenders “to encourage the flow of capital into the home-lending market,” as Justice John Paul Stevens wrote in a concurring opinion…

May 20, 2014 – Statement 198: “Large investors are rushing into the riskiest corporate bonds, frustrated by low interest rates on safer investments and convinced that even companies with shaky finances are in little danger of default. The demand for low-rated debt is raising concerns that investors are stockpiling future risk…

May 19, 2014 – Statement 197: The below explains the recently falling 10-year Treasury yield this year. The bottom line is the Fed’s QE has taken all the supply out of the market (it’s on their balance sheet). They are doing this to keep mortgage rates low, which are priced off the 10-year Treasury. Shouldn’t the government be issuing as much long-term debt now as possible and locking in these historically low rates (only 5% is 10 years or longer outside of the Fed)? That’s what Fortune 500 companies seem to be doing these days, issuing 30-year debt (one even issued 50-year debt)…

May 19, 2014 – Statement 196: “But the booming tech economy, which underpins the Bay Area housing market, has some asking whether Silicon Valley is in a bubble, similar to the one that popped in 2001 and led to a national economic downturn…

May 19, 2014 – Statement 195: “In a financial crisis, the natural instinct is to let creditors suffer losses, let firms fail, and protect taxpayers from any risk of loss. But in a financial panic, a strategy based on those instincts will lead to depression-level unemployment. Instead, the government and the central bank have to step in and take risks on a scale that the private sector can’t and won’t…

May 19, 2014 – Statement 194: “The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery…

May 19, 2014 – Statement 193: “One of the themes in “Stress Test” is Mr. Geithner’s difficulty in understanding the health of large financial firms. He admits that he didn’t see the mortgage crisis coming and didn’t grasp the severity of the problems after it appeared. He didn’t require that the banks he was overseeing raise more capital because his staff’s analysis couldn’t foresee a downturn as bad as the one that occurred…

May 19, 2014 – Statement 192: “At a minimum, Mr. Mian and Mr. Sufi say, they cannot understand why the government encourages borrowing, for example, through tax deductions for mortgage interest payments. “You need some kind of limit on where people can smoke, and you need some kind of limit on debt,” Mr. Mian said…

May 19, 2014 – Statement 191: “Hilariously credulous are certain reports in the California press claiming Toyota’s decision to move its U.S. headquarters, along with 5,000 jobs, to the Dallas suburbs was in no way a reflection on California’s business or political climate…

May 19, 2014 – Statement 190: “Let us pause for a moment to state the plain fact that the entire college financing system is a national disgrace. College costs are high, universities don’t counsel undergraduates well enough, families get in over their heads, there are too many types of loans, the repayment options are dizzying…

May 19, 2014 – Statement 189: “…led by Liu Shiyu, a vice governor of the People’s Bank of China, central-bank officials discussed mortgage-lending policies with executives from 15 major banks….China’s central bank asked the nation’s major lenders to give priority in mortgage lending to first-time home buyers, as concerns increase over the sluggish property market.”, Wall Street Journal, May 14, 2014

May 14, 2014 – Statement 188: “Hey, I have an idea! Let’s have the government encourage expanding lending to riskier borrowers. That way we can sell more houses, real estate agents can make their commissions, and when things go south, we’ll blame the lenders! Didn’t we try all that about ten years ago?…

May 13, 2014 – Statement 187: “(An employee of) BB&T writes, “Speaking of low down payment loans for first timers- As part of their CRA requirement, BB&T Bank offers a 97% LTV conventional loan with no PMI called CHIP: “Community Homebuyers Incentive Program.” All of the 3% down payment can be a gift. They lend to borrowers who are at or below 80% of the median income for their area, and will go down to a 620 credit score…

May 7, 2014 – Statement 186: “Fed Chair Yellen recently admitted they don’t have a good model of inflation….(and yet) The Fed (ignores Milton Friedman’s dictum and) focuses far too much attention on distracting monthly and quarterly (inflation) data, while ignoring the longer-term effects of money growth…

May 6, 2014 – Statement 185: “I’m not predicting that the market is going to fall 12 percent or 50 percent. (And if I did, you should stop reading this column.) As (Nobel Laureate) Mr. Shiller says, ‘There is no way to predict the future.’”, David Leonhart, New York Times

May 6, 2014 – Statement 184: “Here’s a little-known fact: Berkshire Hathaway, the fifth-largest company in the United States, with some $162.5 billion in revenue and 300,000 employees worldwide, has no general counsel that oversees the holding company’s dozens of units. There is no human resources department, either…

May 6, 2014 – Statement 183: “How in the world can the National Statistical Rating Agencies rate 50-year bonds or even 30-year bonds for one corporation? Who knows what CAT’s cash flows or EBITDA will be in even five or ten years, let alone whether or not (in a competitive marketplace) CAT will have survived that long. It’s nuts!!!….

May 5, 2014 – Statement 182: “(The FERC) Shooting random people for following the law, that sets the markets and the world back.”, Rich Gates

May 1, 2014 – Statement 181: “Only one lender, OneWest, the former IndyMac bank, would not settle, opting instead to continue with the review of loan files. After completing most of the review this year, OneWest, a California-based bank that has a former Goldman Sachs partner as its chairman, doled out a relatively modest $8.5 million and only to homeowners who had actually suffered financial harm…

April 30, 2014 – Statement 180: “Fostering cyclical resilience means ensuring that the key securitization infrastructure on which the secondary mortgage market relies is not exposed to financial risk resulting from swings in housing prices or the economy…

April 30, 2014 – Statement 179: “Piketty also ignores other problems that would surely stem from so much wealth redistribution and political control of the economy, and the book suffers from Piketty’s disconnection from practical politics — a condition that might not hinder his standing in the left-wing intellectual circles of Paris but that seems naive when confronted with broader global economic and political realities…

April 30, 2014 – Statement 178: “The roots of the problem, say many Italians, lie in how vested interests in the private and public sectors gum up the economy, preventing change that replaces old practices with new, more efficient ones, and repeatedly frustrating political attempts to shake up the country.”, WSJ

April 29, 2014 – Statement 177: “Barely a month after Toyota settles a politically-tinged criminal case with the U.S. Government for $1.2 billion and in related civil matters is being sued by class action attorneys for billions more, is it any surprise that they are moving their North American headquarters from California to Texas? Texas, like nearly every other State and unlike California, respects the common law Business Judgment Rule and protects BOTH directors AND officers from ordinary negligence lawsuits and hindsight judgments.”, Mike Perry

April 29, 2014 – Statement 176: “Isn’t Berkshire Hathaways’ (Buffet’s son is the director on Coke’s board) decision to abstain from approving Coke’s equity plan a material piece of information that Coke was obligated to publicly disclose to its shareholders before they voted on the plan? What do you think? What does the SEC think?”, Mike Perry

April 28, 2014 – Statement 175: “If you thought mortgage-underwriting standards were lax right before the housing crisis, wait until you take a closer look at student loans. Borrowing for a house at least requires an appraisal of the property and an assessment of the borrower’s future capacity to pay. Student loans require neither. Instead, students and families are encouraged to invest in any program at any price…

April 28, 2014 – Statement 174: “The German economic thinker Max Weber believed that for capitalism to work, average people needed to know how to do double-entry bookkeeping. If we want stable, sustainable capitalism, a good place to start would be to make double-entry accounting and basic finance part of the curriculum in high school, as they were in Renaissance Florence and Amsterdam.”, Jacob Soll, USC Professor of History and Accounting

April 28, 2014 – Statement 173: “Meanwhile, the rest of the country slouches along, unemployment high, wages stagnant, credit tight. But Silicon Valley feels like a foam party. It turns out that one might have more to do with the other than you would think. The Federal Reserve is currently keeping interest rates very, very low. They’ve been keeping them very, very low for a long, long time. The idea is to spur investors…”

April 28, 2014 – Statement 172: “No one knew how many transfusions would be necessary. Heated disagreement ensued. We were trying, as Isaac does now at the poker table, to calculate with incomplete information the probability of various outcomes. We knew that any action would have to be predicated on our understanding of probabilities.”, Brooks Haxton, Time Magazine

April 28, 2014 – Statement 171: “Low-interest-rate policies have helped bail out banks, the stock market and real estate, but the Fed has not publicly acknowledged the cost of those policies….it cost (American) savers $758 billion.”, Richard Barrington, Moneyrates.com

April 28, 2014 – Statement 170: “A West that prefers debt-subsidized welfarism over economic growth will not offer much in the way of an attractive model for countries in a hurry to modernize. A West that consistently sacrifices efficiency on the altars of regulation, litigation and political consensus will lose the dynamism that makes the risks inherent in free societies seem worthwhile.”, Bret Stephens, Wall Street Journal

April 28, 2014 – Statement 169: “The CFPB has more than 1,300 employees, yet so far its chief accomplishments are a rule that lets taxpayer-backed Fannie Mae and Freddie Mac stay in the subprime mortgage business; research that attacks arbitration (which pleases the trial bar); and a ginned-up campaign to label bankers unintentionally racist for not lending enough to minorities. It is a thoroughly politicized bureaucracy with a distinctly antibusiness bent.”, Mary Kissel, Wall Street Journal

April 25, 2014 – Statement 168: “Finally, one of the great aspects of the American system is that it is okay to fail and to try again. But even that seems to be diminishing as failure, other than in Silicon Valley, is severely punished.”, Jamie Dimon

April 11, 2014 – Statement 167: “Even that wouldn’t cure a second level of constitutional infirmity. Based mostly on precedent established before the SEC had any power to punish, courts have exempted SEC prosecutions from many bedrock due-process protections taken for granted in criminal cases. The presumption of innocence…

April 8, 2014 – Statement 166: “Freddie Mac’s former President, the one who was their Chief Operating Officer right up to the financial crisis and left just about a year before they were placed in conservatorship by the U.S. government (from 2004 through September 2007) is now going to postpone his retirement, so that he can ‘save’ Citi from its regulatory problems with the Fed?”, Mike Perry

April 8, 2014 – Statement 165: “Just to clarify, the difference between being pro-business and pro-market is categorical. A politician who is a “friend of business” is exactly that, a guy who does favors for his friends. A politician who is pro-market is a referee who will refuse to help protect his friends (or anyone else) from competition…and opposes special treatment for anyone.”, Jonah Goldberg, Los Angeles Times

April 7, 2014 – Statement 164: “If you were ill at the beginning of the 19th century, a physician was your best bet, but his knowledge was so rudimentary that his remedies could easily make things worse rather than better. And so it is with economics today. That is why we economists should be sure to apply the principle “first, do no harm.””, N. Gregory Mankiw, Harvard Economist

April 7, 2014 – Statement 163: “The Nobel Prize-winning economist Daniel Kahneman has noted that it’s our nature to overestimate how much we understand the world and to underestimate the role of chance. And it’s our folly to assume we know very much at all. There’s “a highly objectionable word,” he writes, “which should be removed from our vocabulary in discussions of major events,” and that word is “knew.””, New York Times

April 7, 2014 – Statement 162: “And there was Washington Mutual. TPG led a group of investors in extending a $7 billion lifeline to the struggling bank in the spring of 2008. Just months later, the government seized WaMu, and TPG lost every penny.”, New York Times

April 7, 2014 – Statement 161: “By the way, if the feds knew about this, why wasn’t it disclosed to investors when the reborn GM sold shares to the public in 2010 or when the government sold the last of its shares in 2013? This would seem to be an issue for the SEC, which never tires of sanctioning companies that fail to disclose material facts. Does GM get a pass because it was Government Motors?”, Wall Street Journal

April 7, 2014 – Statement 160: “Buying high-quality debt alone is not going to put meat on the table, and you have to take a little more risk.’”, John Kerschner, Janus Capital Group Inc.

April 7, 2014 – Statement 159: “The government’s job as a criminal prosecutor is not to obtain convictions, but ‘to do justice’….It should be required to follow the Brady rule in civil trials…but the SEC does not, even when it accuses a citizen of fraud.”, Mark Cuban and Thomas Melsheimer, WSJ, April 4, 2014

April 7, 2014 – Statement 158: “Monetary policy should be less accommodative…willing to tolerate a larger forecast shortfall of the path of the unemployment rate from its full employment level…when estimates of risk premiums in the bond market are abnormally low.”, Jeremy C. Stein, Federal Reserve Board Governor, March, 2014

April 7, 2014 – Statement 157: “As our culture moves both in form and substance from a “rule of law” society to an “ends justifies the means” approach, we will see our country begin to resemble Russia and China in the courtroom. Those people that the state wants to hammer will be indicted for political reasons.”, Russell Dodds, WSJ, April 4, 2014

April 3, 2014 – Statement 156: “This is a great OpEd by American entrepreneur Charles Koch. I share these views based on my 30 plus years of business experience and academic study; including the last five where I (and my family) personally experienced a federal government bureaucracy that did not seem to care about the facts and the truth (and the law) and certainly does not seem to care much about individual American’s freedom and liberty.”, Mike Perry

March 13, 2014 – Statement 155: “No matter which city wins, California will be losing yet another Fortune 500 company…Texas gets Oxy and is looking for more.”, Los Angeles Times, March 13, 2014

March 13, 2014 – Statement 154: “Thus, (securities) cases certified as class actions—and 77% of decided motions for class certifications are granted, according to a 2014 study by consulting firm NERA—threaten defendants with financial ruin. They subject defendants to relentless pressure to settle, even in cases with weak merits.”, Andrew N. Vollmer, former Deputy General Counsel, the Securities and Exchange Commission

March 12, 2014 – Statement 153: “So, I think it will take a while for scholars to decide exactly what role easing monetary policy had in contributing to the financial crisis.  I would not argue with the idea that a long period of low interest rates does contribute to the buildup of leverage and may have touched off a housing bubble.”, Federal Reserve Board Chair, Janet Yellen, February 27, 2014

March 12, 2014 – Statement 152: “Advocates of it say it never costs anything and so that sometimes begs the question: Do you need the federal backstop there?” said Rep. Scott Garrett (R., N.J.). “If other countries want to make bad economic decisions, they’re free to—it’ll benefit the U.S.,” said Rep. Justin Amash (R., Mich.), who has introduced legislation with Sen. Mike Lee (R., Utah) to eliminate the (Export-Import) bank over three years., Wall Street Journal, February, 2014

March 10, 2014 – Statement 151: “In December, almost 40 percent of the home sales were all cash. Redfin estimates that, on average, 60 percent to 80 percent of San Francisco homes are selling for prices over the original asking price. Most are gobbled up within 16 days of being listed….”, New York Times, March 3, 2014

March 10, 2014 – Statement 150: “Sounds a lot like the short sellers who attacked IndyMac and the U.S. housing, mortgage and financial system. I think they might have coordinated. I read that short seller Paulsen donated millions to the Center for Responsible Lending. Then they issued misleading reports about us (and others). Did they get New York, U.S. Senator Schumer to publicly release his letter of concern and spur our bank run (and failure)? Don’t we all deserve to know the truth?”, Mike Perry, Former Chairman and CEO, IndyMac Bank

March 10, 2014 – Statement 149: “Aggressive (U.S. government) housing programs have not always helped the poor and middle class. The median net worth of American adults is now one of the lowest among developed nations—less than $45,000, according to the Credit Suisse Global Wealth Databook. That compares with approximately $220,000 in Australia, $142,000 in France and $54,000 in Greece.”, Michael Milken, WSJ, March 6, 2014

February 27, 2014 – Statement 148: “It is very hard to make the judgment now that the financial system as a whole or the banking system as a whole is undercapitalized. Based on everything we know today, if you look at very pessimistic estimates of the scale of losses across the financial system, on average relative to capital, they do not justify that concern.”, Timothy F. Geithner, President of New York Federal Reserve and Vice Chairman Federal Reserve Board of Governors, FOMC Minutes, March 18, 2008

February 27, 2014 – Statement 147: “Although Mossberg was not alone when he was appointed lead plaintiff in this action, finding him an adequate class representative in the face of the information the Court now has before it would render the PSLRA’s protections and Rule 23’s requirements toothless…”, Judge George H. Wu, United States District Court Judge, November 14, 2011 (in granting (!!!!) Lead Plaintiff’s Motion for Class Certification, Sven Mossberg vs. IndyMac Financial, Inc. and Michael Perry)

February 27, 2014 – Statement 146: “Tapping this data (land availability “elasticity scores”), economists Atif Mian at Princeton University and Amir Sufi at the University of Chicago’s Booth School of Business have shown that more constrained areas saw bigger booms in the housing bubble—but also bigger busts on the way down.”, Wall Street Journal, February 27, 2014

February 27, 2014 – Statement 145: “From 1997 to 2013, there were 3,200 private securities class-action lawsuits, costing $75 billion (in settlements). There are only about 5,400 U.S. publicly-traded companies on the NYSE Euronext, NASDAQ, and NYSE Amex!!! Based on my experience, I believe that most of these suits are the real fraud; designed to “extort” public companies, by exploiting our dysfunctional civil legal system.”, Mike Perry, Former Chairman and CEO, IndyMac Bank

February 20, 2014 – Statement 144: “The stock price is withering. Investors and analysts are feeling burned….if Mr. Zuckerberg has a revolution up his sleeve, let’s see it. Otherwise, he should settle the lawsuits, expect large staff turnover, and get on with running a business whose scope, prospects, and share price are limited by the limited prospects of advertising on Facebook.” Holman W. Jenkins, WSJ, August 18, 2012

February 19, 2014 – Statement 143: “Mr. Perkins first came to widespread attention a few weeks ago by comparing anti-tech demonstrators to Nazis. We might be heading, he said, to a new Kristallnacht, when Hitler Youth and stormtroopers were unleashed against Jews and their businesses. He quickly disavowed the analogy, but not the reasoning behind it.”, David Streitfeld, New York Times

February 19, 2014 – Statement 142: “Dr. Friston has proposed that our brains are prediction-generating machines. Our brains, Dr. Friston argues, generate predictions about what is going to happen next, using past experiences as a guide.”, New York Times, February, 2014

February 19, 2014 – Statement 141: “Securities laws require material information — that is, information that might affect an investor’s view of a company — to be disclosed. That the government would deny a company’s shareholders all its profits certainly seems material, but the existence of this policy cannot be found in the financial filings of Fannie Mae.”, Gretchen Morgensen, New York Times, February 15, 2014

February 18, 2014 – Statement 140: “Crisis Management Discussion with Mike Perry, former Chairman and CEO IndyMac Bancorp”, UCLA Anderson School of Management, May 13, 2013

February 18, 2014 – Statement 139: “Discussion with Mike Perry Regarding the Financial Crisis”, University of Redlands, March 28, 2012

February 18, 2014 – Statement 138: “Profits are at a record high as a share of G.D.P., yet corporations aren’t reinvesting their returns in their businesses. Instead, they’re buying back shares, or accumulating huge piles of cash. This is exactly what you’d expect to see if a lot of those record profits represent monopoly rents.”, Paul Krugman, NY Times, February 17, 2014

February 13, 2014 – Statement 137: “The Lira has lost as much as a third of its value against the dollar, since the Federal Reserve in Washington began making noises last May about cutting back on its stimulus program, prompting investors to move their money from risky emerging markets…”, Wall Street Journal, February 9, 2014

February 13, 2014 – Statement 136: “In December 2008, Citi was effectively insolvent. (It’s) equity-to-assets ratio, measured in market value—the best single comprehensive measure of a bank’s financial strength—fell steadily from about 13% in April 2006 to about 3% by September 2008. And that low value reflected an even lower perception of fundamental asset worth, because the 3% market value included the value of an expected bailout.”, Charles W. Calomiris and Allan H. Meltzer, February 12, 2014

February 13, 2014 – Statement 135: “The recent turn has been abrupt. The flop reflects a broader turning point in one of the U.S.’s biggest recent asset booms. From 2009 to mid-2013, average prices for agricultural land in the U.S. rose by half, while in Iowa, Nebraska and some other Midwest farm states, prices more than doubled….”, Wall Street Journal, February 12, 2014

February 13, 2014 – Statement 134: “The fact is they (Asian countries) bulked up on savings, held back on consumption and investment, and amassed huge caches of foreign reserves. Sunk into Treasury bonds, these reserves drove a speculative boom in the “emerging market” of the moment: American subprime mortgages.”, Eduardo Porter, New York Times, February 11, 2014

February 12, 2014 – Statement 133: “I find that mandate (the Fed’s dual mandate: stable prices and full employment) both operationally confusing and ultimately illusory. It implies a trade-off between economic growth and price stability, a concept that I thought had long ago been refuted not just by Nobel Prize winners but by experience.”, former Fed Chairman Paul Volker, 2013

February 12, 2014 – Statement 132: “Annual earnings dropped for the first time since Rackspace went public. The stock price has plunged more than 55% over the past 12 months. Rackspace is far from dead, but its business of offering Web hosting and other cloud-based tech services has undergone a big shift since Amazon’s AWS operation got into the game with that company’s usual playbook of driving down prices.”, Heard on the Street, WSJ, February 11, 2014

February 10, 2014 – Statement 131: “… the financial crisis hammered the Harvard endowment and exposed its weaknesses, including a lot of illiquid investments. The endowment declined by 27.3% in its fiscal year ended in June 2009 and still hasn’t gotten back to its pre-crisis peak of $36.9 billion.” Andrew Barry, Barrons

February 10, 2014 – Statement 130: “The Peterson Institute of International Economics estimates that 39% of the increase in U.S. income inequality is because of this imbalanced trade. Yet Washington keeps negotiating so-called free-trade agreements that seem to open the U.S. market while leaving others relatively closed.”, Clyde Prestowitz

February 10, 2014 – Statement 129: “Mr. Hamman suggested a $1 billion prize for nailing every game in the NCAA tournament. Before coming to terms, SCA and Mr. Buffett, along with his reinsurance-business chief, Ajit Jain, set about answering a tough question: What was the chance of a winner? Mr. Buffett said the odds can’t be calculated.”, Wall Street Journal, February 10, 2014

February 7, 2014 – Statement 128: “This debate is fundamental, and the answers affect nearly everyone. Are speculative market booms and busts — like those that led to the recent financial crisis — examples of rational human reactions to new information, or of crazy fads and bubbles? Is it reasonable to base theories of economic behavior, which surely has a rational, calculating component, on the assumption that only that component matters?”, 2013 Nobel Laureate in Economics, Robert J. Shiller

February 7, 2014 – Statement 127: “Yelp sells ads through a mix of a self-service model similar to Google’s and a “full-service” model using a sales force. The company doesn’t disclose how much revenue comes from each method, but said it plans to invest more in the business in the coming year to capture more market share.”, Heard On The Street, Wall Street Journal

February 6, 2014 – Statement 126: “Investor Jim Chanos is quietly building an investment thesis around the idea that buybacks are a sign of corporate weakness, not strength. We were both left agog at what his analysis shows.”, Dennis K. Berman, The Wall Street Journal

February 6, 2014 – Statement 125: “Flailing investors…frustrated by low returns and desperate for yield…can delude themselves, pouring money into ill-conceived projects, be they subprime lending or capital flows to emerging markets.”, Nobel Laureate Paul Krugman, January 30, 2014

February 6, 2014 – Statement 124: “M2 has grown so fast in China not just because the central bank has been issuing a lot of renminbi, but also because the state-owned banking system has lent and relent those renminbi with encouragement from the government, creating a multiplier effect….The Federal Reserve pays little attention to money supply measures, since they do not provide much guidance to setting monetary policy.” The New York Times, January 16, 2012

February 6, 2014 – Statement 123: “I don’t think the (Fed’s) QE policies are so benign for inflation since 40% of my former retirement income has been rerouted to support the life styles of Messrs. Bernanke and Goolsbee’s friends. With my income so deflated, I’m spending a much higher percentage of my income for my essentials (not unlike you’d expect from wild inflation).”, Larry Noertker, Letter to the WSJ Editor, January 20, 2014

February 6, 2014 – Statement 122: “To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”, Nobel Laureate Paul Krugman, August 2, 2002

February 6, 2014 – Statement 121: “Mr. Bernanke was the board’s intellectual leader in its decision to cut the fed funds rate to 1% in June 2003 and keep it there for a year despite a rapidly accelerating economy and soaring commodity and real-estate prices. The Fed’s multiyear policy of negative real interest rates produced a credit mania that led to the housing bubble and bust. His record before the crisis was a clear failure.” Wall Street Journal, January 25, 2014

February 5, 2014 – Statement 120: “All of these things….the pushing around of nuns, the limiting of freedoms that were helping kids get a start in life, the targeting of conservative groups—have the effect of breaking bonds of trust between government and the people. They make citizens see Washington as an alien and hostile power.”, Peggy Noonan, WSJ, January 31, 2014

February 4, 2014 – Statement 119: “This (FTC) opinion is the most problematic agency action I have seen in terms of the potential to cause harm to consumers. It demonstrates a distinct lack of regulatory humility. This is a product-design case brought in the guise of alleged unfairness to consumers. Do you really want a regulatory agency designing your iPad?”, Dissenting FTC Commissioner Joshua Wright

February 4, 2014 – Statement 118: “Chris Kostman, who operates the Badwater run, Furnace Creek bike race and three other Death Valley events, called it “mind-blowing” and “unprecedented” to have to cancel or relocate the competitions, given that they have had no deaths, serious accidents or citations over 24 years. (The National Park Service does not dispute the events’ clean safety records.)”, The Los Angeles Times, February 2, 2014

February 3, 2014 – Statement 117: “What the SEC has done here is highly questionable and vulnerable to challenge…it is hard to fathom what they were thinking (in deciding to redact interviews on grounds of personal privacy).”, Daniel J. Metcalfe, former head of the U.S. Justice Department’s Office of Information and Privacy and director of American University’s Collaboration on Government Secrecy project

January 30, 2014 – Statement 116: “Nothing distinguishes more clearly conditions in a free country from those in a country under arbitrary government than the observance in the former of the great principles known as the Rule of Law.” Nobel Laureate F.A. Hayek, “The Road to Serfdom”

January 23, 2014 – Statement 115: “Central banks cannot simply move economic growth and employment to a desired level. Monetary policy (cannot) replace a sustainable growth policy, a well-balanced fiscal policy, a well functioning labour market, or an open world trade regime. It is important to avoid illusions in this respect. Monetary policy cannot assume responsibility for everything.”, Thomas Jordon Chairman, Swiss National Bank

January 23, 2014 – Statement 114: “I did not have sexual relations with that woman, Miss Lewinsky.”, President Bill Clinton, Jan. 26, 1998

January 14, 2014 – Statement 113:  “During the pre-crisis boom, homebuyers were encouraged to borrow heavily to finance undiversified investments in a single home, while governments provided guarantees to mortgage investors. In the U.S., this occurred through implicit guarantees of assets held by the Federal Housing Administration (FHA) and the mortgage agencies Fannie Mae and Freddie Mac.”, 2013 Nobel Laureate in Economics, Robert J. Shiller

January 14, 2014 – Statement 112: “The private plaintiffs’ litigation against me, as CEO of IndyMac Bank, was entirely without merit. From day one they never intended to prove a single allegation (and they didn’t). It was all about extracting settlement money from D&O insurance policies, like their scamming brethren in asbestos suits.”, Mike Perry

January 13, 2014 – Statement 111: “And part of the (economic stimulus from FED monetary policy) comes through higher house and stock prices, which causes people with homes and stocks to spend more, which causes jobs to be created throughout the economy and income to go up throughout the economy.”, Janet Yellen

January 6, 2014 – Statement 110: “Look at me. Helpless, tortured, shot, blown up, my best buddies all dead, and all because we were afraid of the liberals back home, afraid to do what was necessary to save our own lives. Afraid of American civilian lawyers.”, Marcus Luttrell

December 17, 2013 – Statement 109: “Public plans have historically assumed roughly an 8% rate of return. But thanks to falling yields on safe assets, pensions must invest in riskier assets to have any hope of getting 8% returns….investment risk to budgets has risen roughly tenfold over the past four decades.” Andrew G. Biggs

December 17, 2013 – Statement 108: “Instead of encouraging innovation, patent law has become a burden on entrepreneurs, especially startups without teams of patent lawyers….the direct and indirect costs of litigation against technology companies (are estimated to be) $80 billion per year.” L. Gordon Crovitz

December 17, 2013 – Statement 107: “A clash between the management of Banca Monte dei Paschi di Siena SpA (The world’s oldest bank and Italy’s third largest financial institution) and the bank’s largest shareholder threatens to throw into chaos a plan to raise cash needed to stave off its full nationalization.” The Wall Street Journal

December 16, 2013 – Statement 106: “(we) worked together to fully vindicate both our clients after their lives were needlessly disrupted and their reputations were needlessly tarnished by years of litigation (by the SEC). As the Court aptly noted, the evidence showed our clients acted with ‘absolute integrity, prudence, and honesty.’”, David C. Scheper

December 13, 2013 – Statement 105: “Would you pay this claim? The Gulf Settlement Program did.” BP

December 13, 2013 – Statement 104: “Mega Millions recipe: longer odds, bigger pots and fewer winners….Many who enrolled in health plans still await confirmation”, Los Angeles Times

December 12, 2013 – Statement 103: “The financial sector has become a self-sustaining perpetual motion machine that extracts money from the rest of the economy.” Jesse Eisenger, ProPublica

December 11, 2013 – Statement 102: “Given these facts, further regulation of the financial system through the Dodd-Frank Act was a disastrously wrong response. The vast new regulatory restrictions in the act have created uncertainty and sapped the appetite for risk-taking that had once made the U.S. financial system the largest and most successful in the world.” Peter J. Wallison, American Enterprise Institute

December 11, 2013 – Statement 101: “And the Fed’s trillions in interest rate risk is supported by only $55 billion of capital; their capital is just 1.4% of assets. They have debt (leverage) that is about 70 times their capital!” Mike Perry

December 10, 2013 – Statement 100: “…you can buy your own stock (with borrowed funds) at a 14% return with a negative or zero or 1% to 2% cost of capital for at least a 12% spread.” Larry Haverty, Gabelli Multimedia Trust

December 10, 2013 – Statement 99: “One of the problems we have in the United States is that prosecutors like to make a name for themselves and they all try to distinguish themselves in one way or another. One way to distinguish yourself is to get the highest penalty ever against a bank…I don’t think it bears much resemblance to anything else. It is not rational.” Commissioner Daniel M. Gallagher, The Securities and Exchange Commission

December 4, 2013 – Statement 98: “So what is it with the Norwegians? Well, they have a kind of superiority complex.” Nobel Laureate Robert Shiller (explaining his psychological theory for what appears to be a current Norwegian housing bubble)

December 4, 2013 – Statement 97: “If you simply announce that things are irrational, then that alone doesn’t get you very far. You have to replace rational agents with some concrete notion of what it means to be irrational. You need to test that notion in a formal, mathematical model.” Nobel Laureate Lars Peter Hansen

December 3, 2013 – Statement 96: “Again, the evidence suggests that we have become an economy whose normal state is one of mild depression, whose brief episodes of prosperity occur only thanks to bubbles and unsustainable borrowing.” Paul Krugman

December 2, 2013 – Statement 95: “Now we’re seeing another upswing in risky behavior. It began surprisingly soon after the crisis, spurred on by central bank policies that depressed the return on safe investments.” Howard Marks

December 2, 2013 – Statement 94: “The recognition of the insuperable limits to his knowledge ought indeed to teach the student of society a lesson of humility which should guard him against becoming an accomplice in men’s fatal striving to control society—a striving which makes him not only a tyrant over his fellows, but which may well make him the destroyer of a civilization…” Nobel Laureate Friedrich A. Hayek

December 2, 2013 – Statement 93: “Venezuelans need a moral authority that defends their rights…they need a champion for a rule of law that will limit the power of the state over their person. Mother Church ought to be that voice. In siding with Mr. Maduro, however inadvertently, she harms her cause in the region.” Mary Anastasia O’Grady

November 26, 2013 – Statement 92: “These agencies (like the CFPB, FDA, FDIC, NSA, and SEC) have assumed frightening new powers over the everyday lives of American citizens, giving government entities free rein over you and me in ways unprecedented in our country’s history.” Sen. Rand Paul

November 25, 2013 – Statement 91: “Allow me to highlight—and then question—some of the prevailing wisdom at the basis of current Fed policy”, Kevin Warsh

November 25, 2013 – Statement 90: “Too much money is chasing too few assets, pure and simple. Artificially low rates deliver artificially high asset prices, accentuating financial fragility.” Tad Rivelle, TCW

November 25, 2013 – Statement 89: “How can 12 men and women sit on a committee and think they can fine-tune the economy without creating imbalances and unintended consequences?” John Mauldin

November 25, 2013 – Statement 88:  “Our current civil legal system, which once was the envy of the world, is slowly destroying America, both economically and culturally.” Mike Perry

November 18, 2013 – Statement 87: “One can hope that in a future financial crisis and there will surely be one…economists, investors, and regulators will better understand how fat-tail markets work. Doing so will require better models, ones that more accurately reflect predictable aspects of human nature…” Alan Greenspan

November 14, 2013 – Statement 86: “The banking system in the United States has been highly crisis-prone, suffering no fewer than 14 major crises in the past 180 years…A country gets the banking system it deserves..”, Charles W. Colomiris and Stephen H. Haber

November 13, 2013 – Statement 85: Does Amazon Have a Special Exemption From the SEC in Complying with Securities Disclosure Laws?

November 12, 2013 – Statement 84: “..ask a U.S. citizen if some semi-governmental agency should control the prices of cars, morning newspapers, and wine…he would jump in anger, as it appears to violate every principle the country stands for….this is not France.” Nassim Nicholas Taleb

November 12, 2013 – Statement 83: “My worst fears are confirmed. This is what I was afraid of, that the euro would be preserved and it would pervert the venture and destroy the European Union.” George Soros 

November 11, 2013 – Statement 82: “It’s a common observation in the context of emerging-market financial crises that they’re often preceded by large capital inflows from abroad and that the problem is that the local banking system can’t handle the massive inflow of capital. So by analogy, sort of a similar story may have happened in the United States.” Ben Bernanke

November 11, 2013 – Statement 81: “The global economy is just as dysfunctional now as it was before the financial crisis. Imbalances that helped fuel the crisis–including the U.S.’s easy monetary policy…..still exist. In fact, they’ve gotten worse.” Rana Foroohar, Time Magazine

November 8, 2013 – Statement 80: “The Experts Keep Getting It Wrong. And The OddBalls Keep Getting It Right.” Is This Really True, or Is it Survivorship and Outcome Bias That Make You Think So?

November 7, 2013 – Statement 79: Should housing and other asset bubbles and busts (and related banking crises) that occurred throughout the developed world, raise doubts as to whether nonconforming mortgages and securitization caused the U.S. housing bubble, as many claim?

November 7, 2013 – Statement 78: “We’ve been bouncing from investment bubble to deficit spending to offset the income that is being drained out of the economy by trade deficits” Jared Bernstein and Dean Baker

November 6, 2013 – Statement 77: Pre-Crisis, World Bank Data Shows That Iceland Grew Its Money Supply 5.4 Times Faster Than Its GDP Growth! Spain 4.9 Times! The U.K 4.4 Times! The U.S. 3.3 Times! What Were Central Bankers Thinking?

November 5, 2013 – Statement 76: “Booms and Busts Around the World Happen Whenever Central Banks Tighten or Loosen Monetary Policy.” John Mauldin

November 5, 2013 – Statement 75: “It all fell apart, in the sense that not a single major forecaster of note or institution caught it (predicted the financial crisis)….I was actually flabbergasted, it (studies about market behavior) upended my view of how the world works.” Alan Greenspan

November 4, 2013 – Statement 74: Foreign Trade and Investment Imbalances Were a Major Cause of the U.S. and Global Financial Crisis. They Remain a Huge Unaddressed Risk, Because It was Easier Politically to Just Blame the Bankers.

November 4, 2013 – Statement 73: “The first and most important lesson that history teaches about what monetary policy can do….and it is a lesson of the most profound importance…is that monetary policy can prevent money itself from being a major source of economic disturbance.” Milton Friedman 

October 29, 2013 – Statement 72: “The evidence against Fan and Fred is voluminous, but the feds want to whitewash Washington’s role in the panic.”

October 28, 2013 – Statement 71: The Fed’s Low-Rate Policies Prompt Investors to Make Dicier Tech Bets; Just Like They Did in The Dot-Com and Housing Bubbles/Busts

October 22, 2013 – Statement 70: Does JP Morgan Have a Special Exemption from the SEC in Complying with Securities Disclosure Laws Too?

October 21, 2013 – Statement 69: Does Goldman Sachs Have a Special Exemption from the SEC In Complying with the Securities Disclosure Laws?

October 21, 2013 – Statement 68: FDIC Chair Gruenberg Stunningly Admits That Prior to the Financial Crisis They Had No Plans To Address a Big Bank Failure!

October 21, 2013 – Statement 67: “In a post Dodd-Frank world, banks are public utilities and no CEO can afford to resist government’s demands.”

October 18, 2013 – Statement 66: “I’m glad I’m able to be the person who can afford to stand up to them. I don’t want anything from the SEC; except them to act like American citizens and treat other American citizens the way they deserve to be treated.” Mark Cuban

October 15, 2013 – Statement 65: India’s New Central Bank Head Warns the Fed to Pay More Attention to the Global Consequences of Their Actions

October 4, 2013 – Statement 64: “(Federal) Student loans are the new subprime; were talking about hundreds of billions of (government) losses…”, Jim Rickards

October 2, 2013 – Statement 63: Federal Judge Rules HUD/FHA Violated Reverse Mortgage Statute by Improperly Directing Lenders to Foreclose on Elderly Widows!!!

October 1, 2013 – Statement 62: We are back in another ‘epic credit bubble’ according to Blackstone; who is the Fed/government going to blame this time when it collapses?

October 1, 2013 – Statement 61: “Monetary policy (set by central bankers like the Fed) insidiously plays with our time preferences and our very ability to engage in economic calculation. The greater the distortion, the greater the destruction needed to correct it.” Mark Spitznagel

September 27, 2013 – Statement 60: “They (central bankers) believe that flooding the world with money will somehow solve the very problems that such interventionism created in the first place.” Ron Paul, 2013

September 27, 2013 – Statement 59: “…the Fed in good measure is the source of risk”, Jim Grant, Founder and Editor Grant’s Interest Rate Observer

September 26, 2013 – Statement 58: “There is an Interaction Between The Monetary Excesses (by the Fed) and Risk-Taking Excesses; Rapidly Rising Housing Prices and Resulting Low Delinquency Rates Threw Underwriting Programs Off Track…”, John B. Taylor

September 25, 2013 – Statement 57: “So if we want them (banks) to be a free capitalist company, they have to be able to fail. If we don’t, we might as well treat them as a utility, because that’s what they are.” Ben Bernanke

September 24, 2013 – Statement 56: “…We believe that the government deserves quite a lot of the blame for getting our financial system and our nation into trouble in the first place.” FCIC Minority Report

September 24, 2013 – Statement 55: “Could the breakdown that so devastated global financial markets have been prevented? I very much doubt it.” Alan Greenspan, February 2010

September 24, 2013 – Statement 54: “With nominal interest rates around 6% and inflation around 6% (in 2004), the real interest rate was near zero, so household borrowing took off” Vernon L. Smith and Steven Gjerstd

September 20, 2013 – Statement 53: “Your No. 1 Client is the Government”

September 19, 2013 – Statement 52: It’s Not Politically Correct To Say, but Individuals Pursuing Their Self-Interest is Essential for Free Markets; Greed Did Not Cause the Financial Crisis

September 19, 2013 – Statement 51: The Simple Explanations for the Global Financial Crisis and Western Slowdown are Wrong

September 18, 2013 – Statement 50: Five Years Later: Don’t Mention the Feds

September 18, 2013 – Statement 49: Unbelievably, the Government’s National Statistical Rating Agency Problem Remains Unsolved!!!

September 17, 2013 – Statement 48: No Down Payment Required (for home mortgages) in Latest Government QRM Proposal!!!

September 10, 2013 – Statement 47: One Thousand One Hundred and Forty Seven Pages: My Entire Sworn Testimony Before the SEC Staff

September 4, 2013 – Statement 46: The Porridge was Too Hot. Now it’s Too Cold. Only Wise Government Knows When It’s Just Right!!!

April 23, 2013 – Statement 45: MBIA Dismisses Lawsuit Against M. Perry and Others

March 13, 2013 – Statement 44: The Securities and Exchange Commission v. The State of Illinois

March 1, 2013 – Statement 43: Did You Know A Government Official Can Intentionally Defame a Private, U.S. Citizen and Not Be Held To Account? They Have Sovereign Immunity!

February 26, 2013 – Statement 42:  Is FHA “A home wrecker”?

February 26, 2013 – Statement 41:  HUD/FHA is Not More Capable or Noble Than Their Private Sector Counterparts

February 7, 2013 – Statement 40: “Never Explained is Why Some Were Bailed Out and Some Were Not.”

February 4, 2013 – Statement 39: Resolution of All Government Civil Litigation Re. M. Perry: Summarized

January 29, 2013 – Statement 38: “Each of the actors: bankers, politicians, the poor, foreign investors, economists, and central bankers did what they thought was right”

January 29, 2013 – Statement 37: Discussion of IndyMac Bank’s 2007 Safety and Soundness Regulatory Examination

January 17, 2013 – Statement 36: “Many People Like Cheap Moralizing…In the West, Intellectuals Like to Blame the Markets”

January 9, 2013 – Statement 35: FDIC Settlement Documents and M. Perry’s Comments Re. Settlement

January 3, 2013 – Statement 34: IndyMac’s (Credit Quality) Performance as a Loan Originator

January 2, 2013 – Statement 33: “Informal Mortgage Industry Talk By Michael Perry”

January 2, 2013 – Statement 32: “IndyMac Bank OMG Not TBTF”

September 27, 2012 – Statement 31: SEC Settlement Documents and M. Perry’s Attorney’s Comments Re. Settlement

September 24, 2012 – Statement 30: U.S. Judge Manuel L. Real’s Signed “Findings of Uncontroverted Facts and Conclusions of Law: Related to Order Granting Partial Summary Judgment in Favor of Perry on SEC’s Risk-Weighting and Section 17(a)(2) Claims”

September 24, 2012 – Statement 29: U.S. Judge Manuel L. Real’s Signed “Order Granting Partial Summary Judgment in Favor of Perry on SEC’s Risk-Weighting and Section 17(a)(2) Claims”

September 10, 2012 – Statement 28: Transcript of 2nd Partial Summary Judgment Motion Hearing Before Judge Real

August 30, 2012 – Statement 27: The Truth is Emerging Despite the SEC’s Attempts to Conceal It.

August 30, 2012 – Statement 26: I think the SEC is engaging in denialism in their statements to the Court.  

August 29, 2012 – Statement 25: How about this recent SEC Statement to the Court; is it misleading? I think so.

August 28, 2012 – Statement 24: Are these recent SEC Statements to the Court inaccurate or misleading? I think so.

August 28, 2012 – Statement 23: Status update on SEC vs. Michael W. Perry

August 24, 2012 – Statement 22: Excerpt from Michael W. Perry’s Sworn SEC Testimony

August 23, 2012 – Statement 21: Supplemental Brief in Support of M. Perry’s 2nd Motion for Partial Summary Judgment in SEC Matter

July 2, 2012 – Statement 20: Reply in Support of M. Perry’s Motion for Partial Summary Judgment: SEC’s Risk Weighting and 17(a)(2) Claims

June 13, 2012 – Statement 19: M. Perry’s Motion for Partial Summary Judgment: SEC’s Risk-Weighting and Section 17 (a)(2) Claims

May 31, 2012 – Statement 18:  U.S. Judge Manuel L. Real’s Signed “Order Granting Partial Summary Judgment in Favor of Perry and Keys”

May 31, 2012 – Statement 17: U.S. Judge Manuel L. Real’s Signed “Findings of Uncontroverted Facts and Conclusions of Law”

May 25, 2012 – Statement 16: M. Perry’s Motion in Limine to Exclude Testimony of Professor Anthony Saunders

May 25, 2012 – Statement 15: M. Perry’s Motion in Limine to Exclude Analyst Testimony

May 21, 2012 – Statement 14: Transcript of Partial Summary Judgment Motion Hearing Before Judge Real

May 18, 2012 – Statement 13: M. Perry’s Memorandum of Contentions of Fact and Law

May 7, 2012 – Statement 12:  Reply Memorandum in Support of M. Perry’s Motion for Partial Summary Judgment

April 23, 2012 – Statement 11: Former FASB Director MacDonald Opines on $18 million Intercompany Payable/Receivable at March 31, 2008

April 23, 2012 – Statement 10: FTI’s Beloreshki Opines on 2008 DSPP Stock Issuance/Impact on Book Value

April 6, 2012 – Statement 9:  Former OTS Regional Director Vigna Opines on Disclosure of Various Regulatory Matters

April 6, 2012 – Statement 8: Former SEC Chief Economist Lehn Opines on Materiality of SEC Allegations and Defendants’ Intent

April 6, 2012 – Statement 7: Former SEC Commissioner Fleischman Opines on Indymac’s Disclosure Controls

April 6, 2012 – Statement 6: Declaration of M. Perry In Support Of His Motion For Partial Summary Judgment

April 6, 2012 – Statement 5: M. Perry’s Motion for Partial Summary Judgment

November 30, 2011 – Statement 4: M. Perry’s Responses to SEC’s First Set of Interrogatories

November 21, 2011 – Statement 3: SEC’s Responses to M. Perry’s First Set of Interrogatories

September 29, 2011 – Statement 2: M. Perry’s Motion to Dismiss FDIC Complaint

September 1,2011 – Statement 1: Initial Statement

“To sin by silence when they should protest makes cowards of men” -Abraham Lincoln

My name is Michael Perry. I am the former Chairman and Chief Executive Officer of Indymac. I have kept silent for three years in the hope that I would be left alone and allowed to rebuild my professional life, but unfortunately that has not been the case. I have been forced to defend myself against unwarranted and false, public allegations.

On July 11, 2008, Indymac Bank was seized by the Federal Deposit Insurance Corporation (FDIC) after a U.S. Senator’s inappropriate public statements during the financial crisis caused a “run on the bank” that rapidly depleted the bank’s ample liquidity. As a result of this bank run and the fact that Indymac was deemed by banking regulators to be “Not Too Big To Fail”, it was not around just a few months later, at the height of the financial crisis, to receive any of the significant and unprecedented assistance the government provided to every “Too Big To Fail” financial institution and hundreds of smaller financial firms. Without this assistance, many, if not most would have suffered the same fate as Indymac, including some of the largest and oldest firms.

Since that time, I and others have been the subject of various government investigations and named as defendants in numerous civil lawsuits, including ones filed by the Securities and Exchange Commission (SEC) on February 11, 2011 (31 months after Indymac was seized), and the FDIC on July 6, 2011 (3 years after Indymac was seized).

The plaintiffs in these civil lawsuits apparently don’t care about the facts or the truth; these suits are filled with distortions and inaccuracies. They are primarily being pursued to gain access to potential settlement proceeds from directors and officers liability insurance, or in the case of the SEC to show politicians, the press, and the public that they are now tough enforcers of the securities laws. The FDIC, for its part, is seeking a significant share of D&O insurance proceeds, but it is also inappropriately seeking to blame former banking executives like me for the FDIC’s own failures. The private deposit insurance fund, for which the FDIC is responsible, became insolvent during this crisis and remains so; without the full faith and credit of the U.S. behind them, they like Indymac and many others, would have failed.

Importantly, Indymac decided in 2000 to carry out its business model through the acquisition of a depository institution whose deposits were insured by the FDIC. Because of this decision, Indymac – unlike government-sponsored mortgage lenders Fannie Mae and Freddie Mac (and others) — has not cost U.S. taxpayers one penny. And while the seizure of Indymac Bank has cost the FDIC’s insurance fund billions, industry experts and others (including me) believe that much of the insurance fund’s loss was avoidable, if only the FDIC had worked with us to save the bank when that was still possible or if the FDIC had made better decisions as conservator once it took over the bank.

Not one of the lawsuits against me has any merit.

I, and the management team and directors of Indymac Bank, made prudent and appropriate business decisions based on the facts available to us at the time and always with the primary goal being to keep Indymac Bank safe and sound, within the parameters of our regulatory-approved, mortgage lending business model. And importantly, we always acted with honesty, integrity and complete transparency and properly complied with all relevant regulations and laws.

The plaintiffs know this and as a result do not want these matters to go to trial where they will lose. This is what happens in America today. Frivolous lawsuits rarely go to trial and nearly always settle despite their lack of merit, because of the time and cost to defend against them (and perversely having a “pot” of liability insurance, or even better a deep-pocket, corporate indemnification, encourages more lawsuits and more settlements). It is particularly disheartening though, to have U.S. government agencies like the SEC and FDIC engaged in this type of behavior in order to further their own image without regard to the damage done to the reputation, career, and finances of honest individuals like myself and others. And it’s not just me and my family that is adversely affected. I believe these legal tactics have a long-term cost to our country’s economic potential and erode our standards. In regard to my latter assertion, I don’t think most Americans are aware (I wasn’t until recently), but there is an exemption in our defamation laws that “privileges” plaintiff’s lawyers and allows them to distort facts and make untrue statements and defame defendants like myself, without any consequence, even if the defendant proves so later in a court of law. This doesn’t seem right, does it?

In conclusion, this site’s purpose is to counter the allegations in these lawsuits (and regurgitated in the press as authoritative, when they are not) with the truth and the facts, for those who care to spend the time to read the documents on this site and understand them. I plan to start out slowly, focus on the government cases, and then if I have the time and it is warranted, expand the site to include my views based upon my experiences and post-crisis study of its true systemic and macroeconomic causes.

Site Visitors:Travel how to

  1. I am glad you spoke up about this. Anybody that knows you or worked with you knows who you are and your integrity. The government doesn’t care. Brad

  2. I’m interested in what movie do you think best represents what truly happened in 2008? I googled and their seems to be more than one ….From an ex-employee who surely enjoyed working for your company. I watched the movie “To Big To Fail” which was interesting. It was also interesting that Indymac was never mentioned. Take Care.

    • IndyMac could be it’s own movie – or a damn good documentary; but, the government and Wall Street would probably keep it fom distribution if the truth were told. At the very least Chuck Schumer (and his friends) would have a fit. I’m surprised Mr. Perry hasn’t written a book. IndyMac was well branded and certainly appears that if Schumer hadn’t made his (intentional) rumor-esque statements, IndyMac could have survived with the bailout. It was the Wall Street big bad boys that have stalled recovery. If they weren’t allowed to own securitization tranches or oppose modification, banks like IndyMac (IMHO) would have worked with their customers when the economy collapsed and tried to keep people in their homes and money flowing to the trusts.

  3. Am I wrong when my intuition tells me that some of the owners who were previous gov’t employees who now own the new company is not accidental? I’m scared to even suggest this.

  4. Mabel Johnson

    Mr. Perry, thank you for the information contained on this blog. My mortgage is currently with Indy Mac and my service provider is One West. It has become very confusing reading all of the negative information on the internet regarding One West/Indy Mac and the “sweetheart deal” with the FDIC. I am in foreclosure right now but have been notified by One West that it’s on hold because of my application for a HAMP loan. Can you answer one question for me? How do I know if my current mortgage loan is part of the FDIC deal wherein One West will re-coop 80% of any losses once it forecloses. I guess what I’m trying to find out is will it benefit One West to foreclose on my loan because of the generous loss agreement with the FDIC or will they want to modify my loan. I believe the investor on my loan is Deutsch Bank. Just trying to figure out if they do foreclose on my home, was it because of the shared loss program with the FDIC. How do I know if I am the so called (7%) of mortgages that are in the shared loss program with the FDIC? I am underwater on my home by $200,000 and because of income will not qualify for the HAMP program. The only possibility would be of an in house modification from One West. Any information would be greatly appreciated and you can email me personally. Thank you.

  5. Mike – Your stamina to fight has opened up a lot of information. As I read your blog and the FDIC and OneWest documents I realize there was more to this than a failed thrift. Your Dec. 2007 10K was strong enough you could have survived especially under TARP. Looks like they took down (sacrificed) IndyMac and Lehman so they could feed the animals with TARP bailout funds. One question haunts me, and only you can answer it – why didn’t IndyMac make the Assignment of Mortgages pursuant to the PSAs?

    You can answer me privately. I’d really like your input on the overall securitization process. Something tells me the investment banks dictated to you…otherwise why would FDIC seal the “Unassigned Records” and eliminate the transparency? And why are the investors not complaining about the failed REMICs? Because IndyMac wasn’t the only one not to make assignments. If you can discuss – please contact me.

  6. Mr. Perry,
    What are your thoughts on collusion between Schumer, Paulson and the CRL on a deliberate attack on IndyMac? Did Issa ever get the communications info amongst these people he wanted?

  7. Mike,

    I applaud you for having the courage to break the silence and defend yourself against the bs. You’re a good role model to honest citizens who are wrongly oppressed but can never muster the courage to protest. Our world wouldn’t have so much corruption if more good people stood up for themselves and fought for what they deserved. You’re a brilliant and honest businessman. I’m sure good things will come back around to you. You can’t fail unless you quit trying. The last few years might have been the worst times of your life, but that could only mean one thing: things can only get better from here. :)

    -Fiona

  8. Hey Mike,
    I love Statement 35 that you posted to NTBTF re: your recent settlement with the FDIC. As always, you tell it like it is, this time exposing the FDIC as an unethical thug of the federal government that used its brute power, and the circumstances of depleted insurance coverage for your legal defense, to extract this settlement and the related banking prohibition.

    Those of us who have known you well and worked with you closely over the years know that the claims by the SEC and FDIC were completely baseless…..and so do those in these oppressive agents of our government. They spent years and tens of millions of dollars on these sham actions, and come away with almost nothing (as the FDIC will likely not recover anything from the insurance) – a complete waste of resources and unfairly punitive for you and your family. With these matters behind you, I know you will do something exceptional once again. Go and show ‘em, Mike!

  9. Mr. Perry, I apologize for not recognizing this earlier as I’ve been engulfed with “reinventing” myself and supporting my family since the collapse of IMB. I was an 8 year tenured employee with the majority of my career firmly entrenched within the Construction Lending Division as a Regional VP. I started off in 2000 as a wholesale RSM, climbing the ranks to AVP within HCL before ultimately accepting a most generous severance package months before the seizure as an RVP East Coast HCL Division. Your leadership, integrity and business savvy will forever be instilled into my business accumen and strategies. Hopefully under your leadership I will have learned enough to help continue to bring myself and family out of these treacherous times. No doubt my time at IMB where the best times of my Life and I only hope and pray you will be able to pull out of this situation and get back into doing what you do best, leading a major corporation. I would go to battle with you anytime. I hope at the time of this print that you are already beginning your next journey. Godspeed Mike…

  10. Mr. Perry – I worked for IMB as an Executive Assistant for a couple years, later I was promoted to the telesales dept, and then CAPS. I thoroughly value my experiences there. All of the wonderful quality training that was made available to me, through IMB, has helped me in all of my jobs after my chapter at IMB. I firmly believe that many politicians and federal agencies used IMB as a scapegoat to further their images or political careers. I am currently writing a 15pg thesis paper for school on the crash of the mortgage industry, starring of course, IMB. I plan on highlighting the improper way that both politicians and the media handled this sensitive situation. I will also address the fact that “blaming the lenders” is a strategy doled out by both the politicians and the media… when in reality there is enough blame to go around, not only from politicians and media, but also stemming from the brokers, and even the borrowers themselves. I thank you for making this information available to me, as they will make extremely useful references for my thesis paper. I also want you to know that my chapter at IMB (I think about 4-5yrs) was one of the best times in my life. IMB was a wonderful company to work for, and I had such positive learning experiences while working there.

  11. Mr. Perry, I had the pleasure of working with you once. Your direct, take charge business style in fixing the issue was impressive and a story I have shared with many over the years. This occurred around 2000-2002. I was the owner of Signature Mortgage in Houston. I was refinancing a $2M new construction loan in Sante Fe, NM for a client in Houston. The file had fallen through the cracks and the lady running your B2B division was completely unresponsive. The client was going to have to pay a huge penalty to his construction source if not taken out that week. I sent you an email detaling the issues. You phoned me within 20 minutes and told me the file would close the next day. I remember that the title company called your firm after that to set up the closing and the IndyMac employee told her “ma’me, everyone in this company is aware of the ( clients name) file, anything you need you just let me know.” You heard my concerns, identified the problem and fixed it….all the while thanking me for my business. I am sorry for the troubles you are going through with the courts and the SEC. Keep the faith and know you have made a positive impact on many people over the years. Good luck.
    Ben Vogler

  12. Mr. Perry, I had the pleasure of working for Indymac Bank for two years in the Schaumburg location up until it’s receivorship in July 2008. I know through it all, we allowed many business owners and blue collared individuals to enter into the mortgage market, who would otherwise have been shut out. These people, started businesses, took risk, and hired people and created opportunities as a result. Most bought and sold, and refinanced responsibly. This is an industry where a failed 2% negatively affect the other 98%. In the end, debt and overleveraging is not an issue banks and individuals just have to deal with, it is also a local and federal governmental issue. That spirit and drive to take risk is a rollar coaster ride we as Americans were willing to profit from on the way up, so we must in turn take that scary (high G force drop) ride down. I, like my brokers, the bankers, the realtors, the appraisers, attorneys, builders, Cpa’s, inspectors, agencies, and most of all, consumers, must share in any blame we attempt to push off on a CEO like some general who gives field commands to their soldiers who must blindly take orders. This is a business of free will, and I hope you can find solace that choices available to some, will always dominate the lack of choices offered to most. The question we must ask ourselves when this all shakes out, is not why the money was offered in the first place, but rather what people did with it. Thank you and I hope you are running a thrift again someday.

  13. Mike – I applaud you for standing tall, sharing and fighting for what is right! I truly believe you had IMB shareholders, customers and employees best interests’ in mind at all times. No one could have predicted and forseen the events that transpired during this financial crisis. Nearly 4 years later, I find it incredibly irresponsible for Schumer to walk away unscathed while you continue to fight the ridiculous allegations. Ironically, some former IMB employees have received letters requesting campaign fund contributions to Schumer. That’s a letter I would be happy to respond to saying “Not a cent! Acknowledge & accept responsibility for causing a run on IMB that was the direct result of it’s failure…not the BOD, CEO, CFO or any of the executive team!” It may not solve your legal battles, but it may soften the blow to your reputation that has been tanished when it should be shined!!! I will proudly support and work under your leadership again, should the opportunity be available. Fight On Mike!!!!

  14. Mike,

    This blog typifies the straightforward and open style of communication and disclosure that is one of your personal hallmarks. Whether one-on-one, speaking to your management team, the company overall, or in formal disclosures to the public, your consistency in being open, frank, and “telling it like it is” is central to your character. Those close to you understand this with absolute clarity, which is why it is so particularly frustrating that the SEC, FDIC, and those of similar ilk would choose to seek a gap in this part of your armor. Even with the benefit of hindsight, and the opportunity to dig through mountains of records and data, their arguments are incredibly weak.

    Unencumbered by having to deal with the reality of the extreme challenges presented by the failure of the real estate and mortgage markets, the bureaucrats enjoy the time, resources, and luxury of playing “Monday morning quarterback,” having never stepped on the field of play themselves. These are the weak and cowardly that arrive after the battle is fought, scour the battlefield for booty, and bayonet the wounded. Despicable, and yet allowed to run without restraint….even encouraged and enabled by those such as Charles Schumer who inspired the mayhem for the benefit of their cronies.

    I have the utmost confidence in you and the facts supporting your position. I was present with you for 9+ years as the company transitioned from REIT to bank, and rose through the ranks, producing great returns for our shareholders. I witnessed the level of effort you made, and the strong leadership that you provided every step of the way. You drove all of us to perform, and required a lot from your management team, but no more than you demanded of yourself. I know the strength of your integrity, view the claims against you as baseless, and stand in the ranks of those who respect and support you. Go get ‘em, Mike….you know that I and many will be honored to support you any way we can!

    Sincerely,
    Mark Nelson

  15. SEC looks into Deutsche Bank CDO shorted by Paulson
    Tuesday, January 31, 2012
    Deutsche Bank is facing an SEC investigation for its role in structuring a synthetic CDO, according to a report by Der Spiegel. The German publication states that the bank’s actions in raising a CDO under its Start programme will come under question after it allegedly allowed hedge fund Paulson to select assets to go into the fund. The bank is then said to have neglected to have told investors about Paulson’s role in the transaction as well as concealing the fact that the hedge fund had taken a short position on the assets, allowing it to profit as the deal collapsed.

    Chuck Schumer fund-raiser John Paulson is key figure in Goldman Sachs fraud case, records reveal
    BY MICHAEL MCAULIFF
    DAILY NEWS WASHINGTON BUREAU
    Saturday, April 24, 2010

    LA TIMES February 20, 2010|By E. Scott Reckard
    In taking over IndyMac’s assets, the investor group, led by Steven Mnuchin of Dune Capital Management, put up $1.55 billion to revitalize the bank. Other investors included hedge-fund operators George Soros and John Paulson, bank buyout expert J. Christopher Flowers and computer mogul Michael S. Dell.

  16. Just another example of the Potomac two step crushing honest businessmen while rewarding and bailing out the wall street firms that caused the liquidity crisis to begin with. I was one of your RVP’s and believe you have no guilt nor anything to be ashamed of.

    • The Trillion dollar question, would we be better off if Citibank and BofA were allowed to fail and the crisis didn’t get intervention; we ripped off the band-aid and the mess of Mortgage Backed securities were sold to voltures for 40 cents on the dollar, all of them. The voltures would short-refinanced all the borrowers to what their house was worth and provided a floor for values as people stopped walking away from their homes because they were even or had equity.

      Or would we be better of it IMB, WAMU, Lehman were allowed to live and we averted the major panic of 2008. If we didn’t have the liquidity crisis, TARP, and all the programs to prop up Wall St, would this have been less of a crisis or just dragged things on with a more socialized banking in the US.

      I think there will be an economic debate for years on that. I still remember how surreal it was to get fired on a conference call with 4000 of your fellow employees at IMB.

  17. I was a 10+ year employee at IndyMac Bank. Whether addressing employess at monthly meetings, addressing shareholders/investors at annual shareholders meetings or behind closed doors at senior management meetings, Mike was consistent and transparent. He was and continues to be a visionary – he taught us to take off our blinders and step out of each of our respective disciplines in order to better understand the mortgage industry in its entirety. MIke’s number one goal had always been to achieve long term growth and success for the bank and its shareholders . . . . . he never lost his way. I thank you Mike.

  18. Settle and be done with it and move on with you life. Your mentor Mozilo did it. Your peers at Wamu just did it. This website is nice, but I don’t see how it will help you fight the lawsuits to your advantage. It only gives gossip mongers materials to, well, talk and gossip about you. In any case, I will always and forever wonder if you booted Scott Keyes (who was my boss’ boss) or if he left you at the last moment. Medical reasons…yeah, whatever.

  19. Mike,
    I am a former executive/owner of a family owned bank that was Too Small to Fight. It was the policy OTS management including Mr. Dochow, Michael Finn who preceeded Dochow and the rest of OTS Senior Management to promote Alt A mortgage lending and othe practices e.g. backdating capital injections for the sole purpose to keep their jobs. If Indy Mac were the only OTS regulated instittuition to have done this i may not believe that Dochow instructed you to do so, however this practice was not isolated to Indy Mac. My situation is different we didnt fail but were forced to sell for political expediency. We were involved in an OTS approved charter rental agreement with Decision One Mortgage a subsidiary of HSBC Bank originating $250mm of volume per month of ALT A mortgages. When the political winds changed and this type of lending fell out of favor we bacame an easy target. I applaud you for standing up. Keep it up!

  20. Uh, you as the Chairman and the CEO too “close to home”; these functions and responsibilities should be separated; but, perhaps this would mean your remuneration would be reduced. Lastly, in that position, job you were responsible for the entity; for it’s success or failure.

  21. Mr. Perry..

    I hope all is well, . I am so glad you are getting the truth out for everyone to understand what really happened. I knew from day one that it is not your fault Mr. Perry. I was reading the blog with tears in my eyes. Mr. Perry you are a respectable , honest genuine Man. I know its been a while since my last email to you. It is not that I forgot what a great man and wonderful person you are, but I went thru some rough times as well,, I am OK now. I still live in pasadena and I totally avoid driving on lake avenue, for some reason I feel like my heart was pulled out when this happened. Mr. Perry, You have a special place in my heart and my family’s heart, We all wish you and your family the best always.

    roula

  22. I worked for IndyMac Bank since 1993 left in 2007. My kids had a dream to work for Indymac Bank and they did. Mr. Perry you made Indymac Bank the best place to work at. I Live in Pasadena and do not drive by Lake avenue anymore… You are a great man Mr. Perry . Wish you the best always and I have no doubt you will make a comeback.. Good Luck to you and your family..

  23. We had no liquidity crisis and the capital raised through Goldman Sachs to meet our PCA. Notified the regulators and they seized us the next day. United Western Bank vs. OTS. I was shocked as the Chairman of the Board. Half the branches where closed and half the employees lost there jobs. How does this help rebuild our economy? Oh by the way, I’ve never been personally audited in my live, the minute I sued the government, guess who shows up? The IRS.

    • Mr. Gibson,
      I have followed the UWB story, what a crime and a shame. You are right in asking the question; how does tis help rebuild the economy? I think it is pretty evident that the economy needs to be rebuilt from the bottom up. The top-down model is obviously flawed and broken. What drives the economy? Consumer participation. Financially weak consumers = a weak economy (too few participants). A financially strong consumer = a strong economy (many active participants). This economy needs willing and financially capable participants. The banking community itself can make that transition happen. They just need to open up their minds and see they have everthing needed to turn everything around. Unfortunately, decades of conventioanl practice has left banking institutions blinded.

      I have ideas to discuss with visionary bankers. Proven models of profitability for both institution and consumer.

      What are you doing today?

  24. Mike,

    I unfortunately only was able to work for Indy Mac for a short period of time before the events that eventually led to the closing of the company. In my short time there I really came to appreciate the culture and leadership of the company. Having to work through the chaos that began in 2007 it felt great to be at a company with the principles and foresight to change and succeed in our new financial world. I am also a person who personally bought a lot of the stock based on my confidence in the direction our company was going. I specifically remember the day Schumer had made his comments and the instant negative impact it had on our company and was/continue to be furious by the ability a politician has with reprucissions to cause the damage he did. I had looked forward to my future with Indy Mac and still regret that I didn’t get the opportunity to see where it could have gone. Though short, I am glad that I was part of company you created.

    Dan

  25. Hats off to you Mike. Right, wrong or indifferent, someone has to step up and expose the corrupt. This is the 1920′s all over again. Shurmer; what a snake. Unfortunately we are pretty much powerless to enforce justice against him, unless of course we bring back shackles in the town square and let the public take care of him.

    There is one thing we can do as a consumer base though, as it relates to the “too big to fail” banks; quit doing business with them! You don’t need rumors to start a run on a bank. Just make a decision, collectively to not do business with any particular institution. Take your money and give it to a community bank or credit union in your own neighborhood. Do you want to get the big boys out of your town? Then don’t do business with them. It’s that simple. Don’t feed the cat if you don’t want it hanging around the back door.

    The whole banking model has to change from the ground up, NOT the top down. Build a stronger consumer and you build a stronger bank. Build an insititution the regulators applaud (or ignore). Everybank has the tools to help consumers become much stronger financially, but NONE of them can provide the education on how to use what they sell. Most bankers don’t know how to use what they sell. The model has to change if we expect financial change in this country. It can work if you know how to work it.

    Keep up the good fight!!!

  26. I worked for Indymac for almost a year. We were hopeful this would be a great place to retire after 20 years working at Southern California’s biggest community bank. Big surprise a year later. Waht would have happened if IMB, WaMu and Lehman had been given life support to succeed? Wouldn’t we have been better off if we had wound down over a few years while other business lines increased revenues. What was holding that back? I see AHM, they didn’t have a sustainable capital base, but IMB had all those deposits. The BK only gave Government Support to the firesale buyers, and wiped the investors. Did that accomplish anything positive? Could it have worked out better?

  27. Mr. Perry. While I worked for IMB, I was tasked with resolving disputes with the bank. I learned quickly that you were a “stand up guy” and when I presented facts that we screwed up, I saw you make it right. When there was a question on consumer reaction to options arms, I was tasked was presenting the truth with how they worked and not once was there anything asked but to present the truth. You impressed me the entire time. I never saw the Mike Perry they try to portray. I saw a tough but sound businessman who treated us like family at IMB.

    Thanks,

    David

  28. Mike:

    IndyMac was a great company and you were a great leader..But I’m personally over the entire nightmare, and have moved on with my life. I learned a lot from you during my 11 years at IndyMac, and hope carry it on to my new career.

    Take Care friend,

    Mark

  29. Best of Luck, Mike. I enjoyed working with you and other senior leaders in my sphere. Tony, John, JK, Eric and many others are people I respect and still communicate with. I hope that all the other IMB associates were like me and able to take the values we gained under your leadership and use them in our post IMB careers

  30. I too was a CEO of a failed Bank. Why does no one mention the rapid decline in Net Interest Margin? We were only six years old when our NIM went from 6.5% to 2.2%. That rapid 4.3% decline in NIM resulted in a reduction of interest income of $40 million per year! As a relatively small financial institution of $1 billion in assets we simply could not manage the $3 million per month charge to our capital position. Throw in a few bad loans (still less than 2% in the first depression in 80 years) as we were an SBA boutique lender, and the complete shutdown of the SBA secondary market and our liquidity was stressed.

    We were audited annually by our wonderful CPA firm, a “special” SBA audit firm, as well as the combined State and FDIC regulators. Of course they nit picked as us on small issues but in the end they all rated us “experts in credit and documentation. In 2006 we were rated by Bauer Financial and the American Banker Association the number one performer in our asset class. Now however the FDIC in its “always wrong” stance has been threatening to sue the entire BOD on issues of poor performance, bad management, etc…

    I guess what really gets my heart pounding are two facts:

    First, no one not even our esteemed regulators had a chrystal ball. If the FDIC were blamless then they should have predicted the financial crisis themselves long befor the crash. But instead they want to point the finger at people who have been honest hard working men and women for 40 years, and say now they we are crooks. After spending our whole life in banking and always doing whats right even went it hurt….we’re crooks! The fact is 99% of us loved what we did, and loved banking. We had our whole personal and professional careers and most of our personal resources invested in our institutions. So why would we ever hurt them?

    Second, we were strong in our community. We were the number one small business lender in our community for many years. Creating thousands of jobs! Yet we, as the american people were also, were deemed not too big to fail. The Federal government chose to bail out the “Big Boys” and let the small community banks and the american people fail. Now the “Big Boys” all still have their jobs and their stock has value. Yet they charge the american people $35 for and overdraft, 30% interest on credit cards, and foreclose on our homes using our own money to throw us out!

    I guess I am bitter. I’m bitter because the regulators want to chase the D & O monies with attorneys who would be unemployed if not for this job. They have to discredit us to succeed. And I’m sorry for you Mr. Perry because they have to make an example of someone to hid their own fault. This time it is you. But for the rest of us…… There were only two insurance companies of any merrit which wrote the D & O coverage across the United States. The same people who own them are the same people who own the “too big to fail banks” . People not corporations. I’m sure they have contacted their congressmen and senators and after a few of the scapegoats are publically admonished all will fade away.

    Mr. Perry you only have one life. You must for your own sake and the sake of your family get out of this asap. It is not your fault …it is like getting cancer. Find a nice consulting job with Accenture……they have been thru this before. Hug your kids …go to church….. stand up tall. Be proud of your accomplishments. You have a lot to be proud of. Unfortunately only a few of us will understand. I think there are about 400 of us CEO’s out there. CEO’s who were not too big to fail.

    • Mr. Harold,

      Based on your comments above and other comments you have left at various locations across the internet it appears you are a bank executive that understands the fundamentals of a strong financial institution (or a country for that matter): the foundation is built upon the financial strength of the consumer. As the old saying goes: S&@t flows down hill and boy are we all sitting in it. It’s like the boys on the hill, the Fed, the Treeasury and the “too big to failers” all took a laxative on the same day back in 2008. Now they’re coming after guys like Mike Perry and blaming guys like you for the mess. It’s madness.

      However, crisis delivers TWO elements; disaster and opporutnity. The disaster has already occurred. The opportunity is still present.

      I would like to talk to you (or anyone of the 400 CEO’s you referenced) about an innovative business model. The pilot program of this model has deemed itself wildly successful from July 2007 to today. This model attracts an A+ consumer base and provides the ability to reach 100% SOW with that consumer. This business model has the makings to change the financial landscape of this country WITHOUT the need for big government and big business/banks.

      Here’s one thing I don’t anyone truly understands in this country, expecially the citizens. Remember the “golden Rule’; He with the gold rules. Well, everyone thinks “He” is the government and big banks, but that’s not the case. “He” is “We”! We the people are the ones who earn and spend. We are the ones that hand over our income to deposit accounts, the same accounts that keep the banking machine running. What happens if We stop depositing our income? What would happen? Want to make the big boys (BofA, WF, USB) fall to their knees? Have 50% of their customers cash their paycheck instead of deposit it. Wow, could you imagine? You can ALWAYS take down a bully. You just need to know his weakness.

      If you want to force change you need to act. To gain allegiance you need to lead. The country needs a financial revolution and it needs a leader to direct its purpose.

      If there is a banking executive reading this who considers themselves a leader, a visionary and has the capacity to bring change to a failed business model? If you want to discuss the possible future in banking and borrowing then please contact me directly at bwestrom@ifsdg.net

      Face it guys; the current banking model has proven itself to be outdated, antiquated and ineffective. It’s time for a change.

  31. Mr. Perry:

    You’re to be commended for having the courage and tenacity to work to clear your name. The system of justice in America is about as crisp as the regulatory regime that oversaw the mortgage industry. Sadly, you are suffering from both. I hope you’re successful. Get good help and post everything you can within the parameters of confidentiality. Sunshine has a great way of cleansing misconceptions.

  32. Mike,
    In my short tenure with IMB I always respected you as a leader and knew that youand the mangement team did every thing possible to save IMB. We were all hard working employees that had a goal. . to continue to make IMB the successful company it was for many years. As a former IMB employee and now OneWest Bank employee I truly miss working for you and would not hesitate to work for you again!

  33. Hi Mike
    I have been your corner since you were a “pup” and remain there now. I’m retired now for 4 years but if you need me just ask.

    Tom Rafferty

  34. Mr. Perry I had the best 10 years of my career at IndyMac, our leadership , our culture cannot be replicated!! I respected your decisions during that tenure and I respect them today. Keep your head held high. Thank you for all IndyMac has done for me as a person and more importantly my family.

    Sincerely,

    Ann M DiCola

  35. Mike,

    I have always known you to be a person of high integrity. I have seen how important your family is to you and I know you viewed your fellow employees at IndyMac as an extended family. Seeing so many of them post here on your behalf is a testament to that.

    Your courage and fortitude through all of this is admirable. The easiest thing to do would be to roll over and make it go away. The fact that you did not take the easy road tells me you are a man of true conviction…something lacking in so many of our “leaders”.

    All the best,
    Tim

  36. Mike: I bought stock in IndyMac in 2006 after listening to a couple of your quarterly earnings conference calls. I was totally blown away by your deep and broad understanding of the business, openness about the risks and clear thinking about the strategy. There are not too many CEO’s who could do what you did. I may have lost a little money when the bank was closed after Shumer’s comments caused a panic driven run, but I regret more that the industry lost you as a leader…at least until now.

  37. Mike,

    I too was an alt A lender who sold loans to IndyMac through your correspondent channel. MY company went from 150 hard working individuals to nothing in the span of 3 years. Eventually we were forced to close our doors due to the exact same issues. We were confronted with by plaintiffs attorneys exhausting our E and O insurance and then doing exactly as you describe filing countless frivolous lawsuit after frivolous lawsuit that we were having to spend hundred of thousands a dollars per year to fight just to get to a settlement. Eventually our net worth was exhausted and we felt it was not a fight worth fighting any more and we closed our doors in early 2010. In the 3 years since Indymac was shut down I have spoken to many of your former employees and I can tell you that so many people appreciated working for you. It truly seems as though it was a special time in their lives. I hope to one day soon rebuild my next company and follow in your foot steps of building a great company. The witch hunts and political posturing in the mortgage and banking industry has been a very hard lesson for me to learn and has opened my eyes to the unfairness of the powers that be. I appreciate you telling your story and I believe that the truth will prevail at some point.

    Best of Luck,

    DM

    • DM –

      In the court of historic retrospect in too many cases ALT A = Shouldn’t have gotten a mortgage to begin with. Unfortunately, alot of what we perceived as an economic recovery during the early 2000s was an illusion fueled by easy money and easier cash out refinances which subsidized and inflated what appeared to be real economic growth. I am sorry for your 150 hard working employees who thought they had long term jobs that were not built on pillars of sand.

      DB

  38. Michael, although I briefly worked under your regime I found IndyMac — for the most — to have many intelligent forward thinking employees at all levels who worked extremely hard and brought forward a wealth of knowledge from other institutions. If you knew what is going on now you would vomit, scream, yell and hollar. Yes, IMB failed on your watch. But did the FDIC not give the Bank away rather than assist in repairing the damages created by Schumer’s allegations. Many former IMB folks understand the failure was not of your doing, nor was it your intent. And many former IMB / IMFB folks would work for you again in a heart beat. Keep this blog alive and let true facts be known. Many are curious to know why you are not an executive at OneWest Bank. It would be better to have you as an executive than the current executive vice president of 1st Federal Bank which failed as well. Wishing you the best!

  39. A leader is only as good or bad as the information he or she receives. Not Too Big To Fail might be an appropriate title on many different levels. Thank you for your open candor. How our Country has been taken down with be something of discussion to debate for many years, where time and the rearview mirror will tell.
    Once tarnished from accurate or inaccurate information, a reputation and a career can be something very strenuous to re-build.
    Good luck salvaging your own.
    Sincerely,

  40. Hi Mike! It’s GREAT to hear you speak out. Well said! You have my 100% support. As long-term members of the Indymac Family, Ernie and I are happy to have our side of the story told. Chin up, fight the good fight. I’m honored to add my name to the list of your personal and professional supporters!

    Sara

  41. Hi Mike. I have tried many times to find and reach out to you.Thankfully, I stumbled onto this blog. We have a shared business relationship going back to the Commerce days. It had always been open and successful. Keep you bobber up, things WILL get better. Just be who you are and move forward with your integrity, as always.
    Bob

  42. I used to run a mortgage company with over 300 wonderful, hardworking employees. Unfortunately, I experienced first hand how a democracy works when times get tough. Every legislator, regulator and rule maker want scalps. They don’t care how they get them, it’s about quantity and perp walks. New laws, regulations and rules were coming at our company with such fervor, I knew that I had to get out fast or be one of those scalps. It’s a sad way for such a proud country to run and unfortunately most Americans have no idea what their federal and state governments have done to real estate in America.

    RLee@1nmc.com

  43. I worked for FInancial Freedom when this happened. Before that I watched the mortgage market from the inside. Before that I worked with IndyMac as an institutional customer. I am continuously disgusted by the ignorance and incompetence of our political population throughout this chain of events. Why is Schumer not under indictment or at least investigation? Why aren’t we watching trials of the management of the Federal agencies that were supposed to be doing their regulatory jobs – instead of watching Washington attempting to scapegoat and persecute executives like Perry?

    • Fred,

      I share in your disgust. Why you ask? Why are we just watching everyone get robbed by the government? Dirty, greedy politics. In order to fully understand possible motives, we have to go back a little ways to 2007 when John Paulson invested $15 million into Center for Responsible Lending (CRL). Paulson also contibuted over 100k to the Democratic Senatorial Campaign Committee. 6 months later, on a Thursday, Schumer released his “concerns” for Indymac. 4 days later on Monday, for the first time ever, the CRL released their report on Indymac. They had never released a full research report on an individual company ever!

      Fast forward another 6 months and you will find John Paulson and his buddy George Soros getting the coupon extreme of a deal on whats left of Indymac. Just for pennies on the dollar and getting some amazing kickbacks from the FDIC, One West has really landed the deal of a lifetime.

      Oh, just to make sure that our Treasury Department is in line, Eric Stein who was a top executive of CRL is now in charge of the Proposed Consumer Financial Protection Agency.

      If this was a murder trial and we were searching for motive….that sounds like a good start. What can we do? I don’t know, but I do know that Mike Perry taught us all to scream like hell when something wasn’t right and to treat each other with candid respect.

      I’ve learned to stop asking why and start asking what…what can I do? What can we do?

  44. All of the big banks deserved to fail. They were made whole at huge expense to the American taxpayer and the US dollar. I don’t know if IndyMac was singled out as a scapegoat or not, buy the whole affair stinks to high hell.

  45. I am the former CEO of a “failed” Bank. I feel for you and know what your going thought we were a 46 Million Dollar bank, but what the “regulators” but us thought is unbelievable. On one call with the regulators seem to be blaming me and our tiny little bank for the global economic crisis..I considered myself to be a patriotic person, and still do. But seeing what the government does is just unbelievable to me. People would not believe it.
    Stay strong…..

  46. You have a vision and you go for it; one of the reasons I enjoyed working for Indymac for 10 years. Hang in there Mike. Let the truth be told and you will win!!! Blessings to you and your family.

    Helen

  47. Jennifer Seely, leader of IndyMac Employees for Justice

    For those of you that missed it, here was the petition letter:

    IndyMac Employees for Justice

    July 15, 2008

    Hon. Edmund G. Brown, Jr.
    Attorney General
    State of California
    1300 “I” Street
    P.O. Box 944255
    Sacramento, CA 94244-2550

    Re: FDIC Seizure of IndyMac Bank, FSB

    Dear Attorney General Brown:

    The individuals joining in this letter are all former employees of IndyMac Bank until it was closed by the FDIC on Friday, July 10, 2008. We have been hard working, dedicated staff (tellers, operations, compliance, lending staff) who strived to make IndyMac an excellent bank in difficult times. We provided for our families, paid our taxes, contributed to our communities and assisted our customers. In short we were living the American dream and doing our part to make this a better place to live.

    That all ended on Friday. Because of a malicious, politically motivated act of Charles Schumer, our lives have been shattered. His deliberate publication of what should have been a confidential letter to bank regulators was the direct cause of the failure of IndyMac Bank. From the day his letter was made public on June 26 until the closure of the Bank, a run on the bank took place and the failure became inevitable. Mr. Schumer can’t hide behind legislative immunity for taking this deliberate step. He may have immunity for acts as a member of congress but not for his deliberate personal act in publishing the private letter.

    We allege that Charles Schumer has violated the law of the State of California. Specifically, Section 3369 of the California Financial Code reads:

    Any person who willfully and knowingly makes, circulates, or transmits to another or others, any statement or rumor, written, printed, or by word of mouth, which is untrue in fact and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any bank doing business in this State, or who knowingly counsels, aids, procures, or induces another to start, transmit, or circulate any such statement or rumor, is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year, or both.

    We are angry and want you personally and your office to immediately and vigorously pursue justice under the laws of California. We are all citizens of California and are the very people who the laws of California are intended to protect. Moreover, we are not the only people who have been harmed by Mr. Schumer’s violation of our State’s laws. A lot of our customers lost their savings and have little hope of recovery.

    We hereby demand that you immediately commence a California Department of Justice investigation into the crime of Charles Schumer and indict him when you have confirmed his malicious acts. We request that you keep us informed of the investigation and that it not be delayed. When Charles Keating caused the failure of a bank, he went to jail. Mr. Schumer deserves the same fate and we won’t rest until this job has been done.

    Thank you for your expected cooperation.

    Sincerely,

    The Employees of IndyMac Bank, FSB

    Jennifer Seely
    [list names]

  48. Jennifer Seely, leader of IndyMac Employees for Justice

    Mike,

    I am thrilled to hear you speak out. These last 3+ years have been filled with sheer injustice and have been unsettling. I fought as hard as I personally could by writing the petition letter to have Schumer investigated. So many amazing employees stepped up to sign the petition and I had many customers write to me and share with me their stories. I didn’t expect anything going into it, but I have never been one to sit back on the sidelines and watch. Although unsuccessful, at it allowed people to know the truth about Schumer and the events leading to the bank run which directly caused the demise of Indymac.

    You are so well respected by the thousands that worked for you. If there is anything we can do to support you, please let us know.

    Kind Regards,

    Jennifer Seely

  49. Hi Mike,

    I enjoyed the fact that in my short three years at Indymac as a review appraiser, I always felt able to carry out my job to the best of my ability according to corporate quidelines. No one pressured me to approve appraisals if I had concern about the value. I was also an Indymac customer and as a self employed business woman prior to working at Indymac, I was grateful for the opportunity to invest in real estate which had been unavailable to me in the past as it is once again due to credit tightening. That California loan was long ago paid in full. I had a great relationship with the bank and the appraisal department as a ” go to” California appraiser in the San Francisco Bay area.

    What I really appreciated was that at any time I could communicate with you directly by email.

    I do not think it fair that Indymac was singled out and Countrywide bailed out.

    Good luck to you and your family- you will prevail and rebuild based on your strength of character and optomistic viewpoint.

    God bless.

    Susan Cheng
    Weatherford, TX

  50. Roger B.A. McMillan

    Mike, being an Indymac Alum, I very much appreciate you putting the truth out there. I agree 100% with your statements. Hopefully “truth” will beat out “politics”, but given American history, I’m skeptical. You are one of the wisest and most brilliant business leaders that I’ve ever met – except for your temper:<)

    Have courage and keep pushing forward!!!

  51. Amen, Mike. You know I have given you my support in private, and I do so publicly here.

    Jorge Mena, Jr.

  52. As a former employee of Indy Mac who saw the organization grow, from the 6th Floor of 35 North Lake, I can tell you that many share your sentiments and feelings. Way to go Mike, you will make it happen. Best wishes and prayers are with you.

  53. I worked for you at Indymac for 13 years. I am also in touch with many of the banking and non-banking business leaders both locally in LA and nationally that know you personally and or professionally. Every single person that I have spoken to believes that you are one of the smartest, most capable, honest and fair business leaders they have ever met, and that you have been singled out unfairly by a government that doesn’t care about the truth—A government that only cares about headlines and deflecting blame. This blog is the right vehicle for the truth and we are all proud that you had courage to create it.

  54. You are a very brave man. Seems like this story should be told on Dateline, 60 Minutes, CNBC or Fox Business. Perhaps as you develop the story, they will pick it up. Jeff N.

  55. Mike,

    Thank you for your commentary. You were always very open, un-biased and communicative. I hope you and your family are doing well.

    Lance Lemoine

  56. You don’t get it. You failed to manage risks and your bank failed. All the banks should have failed. We need banks but not yours or any of TBTF. Banking is a utility company. Start over with new boring banking, low leverage.

  57. Mike – I am glad that you have come forward like this. Life is certainly not fair in matters such as this one. i look forward to catching up on what the future might hold for you.

  58. My heart goes out to you. As an orthopaedic surgeon, I have been sued frivollously on a few occasions, and regardless of the merit of the suit, it exacts its toll from your soul. Goldman Sacs, GE, Fannie and Freddie, et al get the bennies, because lf the greased skids of politics, and those like you remain sacrificial lambs. Time for the Judas Goat to get his due……

  59. Amen Mike,

    Your blog is excellent . You should go on a speaking tour that funds taking these siuts to court. If they new you had the will and the resources to fight, they will probably cower.

  60. Mike,

    While in hindsight we (and the rest of the financial world) may have made different business decisions, in the 5 years I worked at IndyMac I always admired your candor, transparency & integrity. I still do, and would now add resiliancy to that list as well. Hang in there – I’m confident those qualities will see you through this as well, however long that may take. In the meantime, all the best to you and your family.

    Ted Tekippe

  61. Thanks Mike,
    Appreciate your courage and willingness to finish the story…..Schummer’s irresponsible comments incited panic and put a target on your back. The consequences are unconscionable. Let’s not forget the recognition and respect you earned from peers and industry leaders for your innovation, leadership, character and integrity that drove one of the consistently most competitive platforms of its day. Your leadership inspired thousands, including myself. You instilled a performance accountability discipline and invested into cutting edge technology that helped reshape the business.
    “You can’t keep a good man down.”

    Rick Glass

  62. Way to go, Mike. I suspect like so many others, you and Indy Mac became Schummer’s target to raise his political profile (along with Dodd, Polousi and Reid, not to mention their mandate (Ted Kennedy) to force lenders to make loans to unqualified consumers.
    Like all of us, I am disheartened not only by the behavior of our elected officials (regardless of party) but of their focus on re-election, not problem solving.
    Hang in there.

    Brad Ball

  63. Mike,
    As a former IndyMac employee, I have to say that in my years of services at the organization, I have always seen the type of integrity and due-diligence that my colleagues had practiced matching those considered socially and ethically responsible. Although I may not be exposed to all the details of every move made by the organization, I did see many hard working people on projects that benefited people and communities. I sincerely wish you all the best of luck. Many ex-colleagues and I very much look forward to be able to work with you again.

    • Mike,

      As a former IndyMac employee, too, I share John’s sentiments. A lot of good people did a lot of good things there. I truly miss the company and appreciate you providing this information.

  64. Glad to see your your telling the “back story”. Your courage is admirable. Hopefully others who are in a similar situation will follow your example. Mark K.

  65. A great characteristic of a leader is to take risk, Mike you had great courage, and still do evident in your blog. When leaders inevitably come to a place where a tough decision is required, it is their personal courage that enables them to stand firm and get through difficult situations.
    I stand firm on my belief, that if it was not for the run on the bank, caused by the senators public comment, today Indymac will still be a player as a financial institution in the market.

  66. Best of luck Mike – too often the “victor” writes the history.

  67. Mike,

    This story needs to be told. It doesn’t surprise me that you have the courage to do so. From what I have read so far, this blog is “vintage” Mike Perry…Honest, straight forward, with no holds barred.

    John

  68. It is great to see you sharing this information. This obviously took not only a deal of time, it also took a great deal of courage. As you know, the internet is a vey public place and may not always be kind. Thanks for sharing, and keep it up! You were always open and honest in your communications, and this is just another great example. Thanks, Gary

  69. Mike, thank you for coming forward to inform the public. In case you are not already aware of the private investigations presently proceeding by Mark Mitchell at DeepCapture.com, I recommend particularly that you see Chapter 21 of his reports at http://www.deepcapture.com/the-miscreants-global-bust-out-chapter-21-how-a-small-gang-of-organized-criminals-wrecked-the-world/

  70. Good for you, Mr. Perry. I do not understand the banking industry well enough to be a judge of whatever documents you post, but in other areas I am certainly aware of malicious, unfounded, and prejudicial statements by government agents and of the hopeless feeling as one considers the cost and improbability of getting justice. If you still have the bucks to do so, go out and make it a big deal.

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