by Calculated Risk on 7/29/2008 10:12:00 AM

Words a banker doesn't want to hear: "We’ll talk to you on Friday"

From the NY Times: Lax Lending Standards Led to IndyMac’s Downfall (hat tip warlock)

IndyMac executives suspected the end was near even before the regulators turned up. Examiners do not warn banks they are coming, but they typically take over failing institutions on Fridays so they can have a weekend to put things in order and reopen under government control on Monday.

As the lines grew outside IndyMac branches during the week of July 7, Mr. Perry talked with an Office of Thrift Supervision official to assess the situation.

“We’ll talk to you on Friday,” the official said, according to one bank official briefed on the call. As word of the call spread through IndyMac, executives began packing their personal belongings.