Tuesday's Winners & Losers: IndyMac
Mortgage lender IndyMac (IMB) continued its free fall Tuesday, even as Federal Reserve Chairman Ben Bernanke attempted to soothe the financial markets.
The California-based lender collapsed more than 30% to 44 cents after saying it doesn't have enough capital to remain regarded as "well-capitalized" by regulators. IndyMac can't fund its lending with deposits acquired through independent brokers, and its request for a waiver from the Federal Deposit Insurance Corp. to allow for brokered deposits hasn't been approved, the company said. IndyMac also said it will lay off half of its workforce.
The company pinned blame on recent negative comments from Sen. Charles Schumer (D., N.Y.), which caused a run on the bank as depositors began pulling their money. Shares recently were losing 38% to 44 cents.
VMware (VMW) fell $12.95, or 24.4%, to $40.24 after the company warned that 2008 revenue will be lower than projected and replaced its CEO and co-founder Diane Green. Paul Maritz, whose start-up company was recently acquired by VMware majority owner EMC (EMC) was named president and CEO, effective immediately. VMware's 2008 revenue will be "modestly below the previous guidance of 50% growth over 2007," the company said.
EMC, which has a majority stake in VMware, saw its shares fall $1.75, or 11.6%, to $13.39. Fannie Mae (FNM) and Freddie Mac (FRE) were both rebounding from big losses Monday. The government-sponsored mortgage lenders benefited from comments made by James Lockhart, director of the Office of Federal Housing Enterprise Oversight, who said an accounting change should not force the companies to boost their capital.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
