IndyMac Bancorp Inc. Chief Executive Michael Perry and director Robert Hunt each bought more than $1 million worth of the struggling lender's shares over the past week in a likely show of support for the company.
Perry purchased about 35,000 shares on March 23 for around $29.40 per share, according to a Securities and Exchange Commission filing. Hunt, the Pasadena-based company's former CEO, purchased the same amount between March 23 and 26 at between $29 and $29.50 per share.
IndyMac volatile stock has lost more than a 33 percent of its value so far this year, trading between $50.50 and $26.27 over the past year as investors react to escalating defaults in the mortgage industry, the collapse of the subprime market, and the slumping real estate market.
More than two dozen companies have been forced to close their doors or seek buyers since investors stopped investing in risky subprime mortgages that have seen defaults on hit record levels across the country. IndyMac has maintained that its exposure to the subprime market is relatively small at about 3 percent of its $90 billion lending portfolio.
Shares in IndyMac rebounded Wednesday, up 34 cents, or 1 percent, to $29.87 in afternoon trading on the New York Stock Exchange.
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