IndyMac Bancorp Inc. took another hit Tuesday as its stock dropped 28% in afternoon trading after Friedman, Billings, Ramsey Group Inc. analyst Paul Miller said the mortgage lender has a thin cushion of reserves and needs to raise a large amount of capital. Now, IndyMac's troubles are starting to impact Alesco Financial Inc., which owns a portion of IndyMac's equity interests in eight collateralized debt obligations.
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The FBR report follows IndyMac's worse-than-expected earnings announcement March 12 and contradicts Indy's claim that it has enough capital to cover losses. One cost-cutting move IndyMac is employing, deferring its interest and dividend payments, however, may prove a hardship to Alesco.
Philadelphia-based specialty finance company Alesco is reviewing the impact of Indy's interest and dividend payments deferments as shareholders of the company have already made their voices heard, pulling out of the stock, causing a drop of 42 cents, or 14.3%, to $2.51 in Tuesday afternoon trading. - Gerald Magpily
See Dealscape: IndyMac still sees future driving solo
See story from Forbes
