The minivan plant in St. Louis will be mothballed in October and another St. Louis plant will have its shifts cut in half. The Journal writes that General Motors has announced four plant closings, while Ford has said it will cut its production of trucks and SUVs.
The Times says June sales are expected to have declined by 17 percent from last year.
The death watch accelerated for mortgage lender and thrift IndyMac Bancorp, which denies it’s in that much trouble, the Los Angeles Times reports. Sen. Chuck Schumer wrote last week to regulators that the bank could fail if it doesn’t act quickly.
The market doesn’t necessarily agree: Its shares plunged 24 percent to a meager sixty-two cents, down 98 percent on the year. And its having something of a run on the bank.
…Elizabeth Brown closed four accounts totaling $200,000 Monday at an Arcadia branch where about 20 customers were lined up at noon, saying: “The only reason I’m panicking is if anything happens, my money is tied up.
“I don’t want to take the chance,” said Brown, 62, of Temple City. “I’m going to put my money somewhere else, and if they come back, I’ll come back.”
IndyMac is the subject of a devastating new report on its lending practice back in the bubble’s bad old days by the Center for Responsible Lending’s Mike Hudson, a former Wall Street Journal staffer who beat the world on subprime abuses.
We’ll have more to say on this valuable report later.