IndyMac Bank OMG Not TBTF
Below you will find a link to a (unedited) paper that I wrote entitled “IndyMac Bank OMG Not TBTF” on July 27, 2008, a few weeks after IndyMac Bank’s failure.
It has not seen the light of day until now, because my attorneys advised me not to publish it or say anything publicly given that I would soon be the target of government investigations and litigation. Now that I have settled the FDIC’s civil matter against me, I have decided to make this paper available to the public.
It is important to note that this paper was written before the apex of the 2008 financial crisis, where many larger financial institutions and even non-financial institutions (like Lehman, Fannie Mae, Freddie Mac, Citi, AIG, GM, Chrysler, the money market fund industry, and many others) failed or likely would have failed if they had not been bailed out by the government; through TARP, government guarantees and/or other measures. So, this paper does not have the benefit of over four plus years of hindsight judgment regarding the global financial and economic crisis. Interestingly, in this paper I briefly describe a TARP-like program and its economic rationale for the FDIC (deposit insurance fund) before TARP was conceived.