CEO: IndyMac Has ‘Turned the Corner’

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Shares in IndyMac Bancorp Inc. surged more than 30 percent Thursday after the company’s chief executive said that it had narrowed its first-quarter loss.


The Pasadena-based lender said that its first quarter loss will be 50 percent to 65 percent smaller than the $509 million loss it posted for the fourth quarter in February.


IndyMac’s Chief Executive Michael Perry said in a regulatory filing Thursday that losses will continue to decline for the rest of this year and added that the company is making progress in returning to profitability.


“Some people have questioned IndyMac’s survivability in the current environment,” he said. “I am here to tell you that I believe we have turned a corner.”


The lender said that its credit costs dwindled fourfold during the quarter.


The company also said its chief financial officer, Scott Keys, took a medical leave of absence and was replaced by Blair Abernathy.


Shares in IndyMac soared 32 percent to $4.26 in early trading Thursday.

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