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.
Accounting rule makers are considering forcing companies to account for securitized assets, such as mortgage-backed securities, on their balance sheets. A strict reading of that rule force Fannie Mae and Freddie Mac to raise a combined $75 billion in additional capital, according to Lehman Brothers. Fannie Mae shares were rising $2.20 to $17.94 and Freddie was gaining $1.90 to $13.81 in response. GPS-based navigational devices maker Garmin ( GRMN) gained as shares of its rival TomTom fell to a new low. TomTom could have trouble meeting financial requirements for its $4.3 billion purchase of the mapping data supplier TeleAtlas, said a Goldman Sachs analyst. Garmin and TomTom were locked in a fierce battle for TeleAtlas. Shares of Garmin were up $1.55, or 3.6%, to $44.14. Shares of Altair Nanotech ( ALTI) were ticking higher by 33.1% to $1.93 during Tuesday's trading session. The Reno, Nev.-based developer of nanomaterial and titanium dioxide pigment technologies publicized the completion of a demonstration and validation program for a new battery system purchased by AES Corporation ( AES). In a Yahoo! Finance interview, Terry Copeland, the president and CEO of Altair, said that the "positive AES results validate the immense opportunities in the utility sector." Rubicon Minerals ( RBY) rose 13.6% to $1.34 in early trading hours. The Vancouver, Canada-based gold exploration company hit bonanza grade gold in its F2 Zone located in Red Lake, Ontario. In a Rubicon press release, David Adamson, president and CEO said that "it is encouraging to see that the major components documented at the Red Lake Mine are present at the F2 Zone."