If you thought Citibank was in bad shape, then check out IndyMac - a major US mortgage lender. The share price fell 25 percent today and it is down around 95 percent compared to a year ago.
The share price fell after Moody's cut the its rating of IndyMac, citing concerns about the bank's lack of capital.
IndyMac was one of those "ask no questions" lenders that thrived during the housing boom. It often required little or no proof of income. With the US housing market tanking, that strategy has left that bank brutally exposed to foreclosures. Last month posted a $184.2 million net loss for the first quarter.
Could it happen here? Could a UK bank implode like IndyMac? Remember Northern Rock?