We're probably at the 5th inning of the shakeout process, but one pattern that seemed to have emerged is that the big financial institutions that either went down or absorbed have a distinct west coast representation
Washington Mutual
IndyMac
Argent and Ameriquest
Countrywide
Why didn't we see corresponding financial institutions fail in the east coast? I think one big reason is that the west coast financial institutions tried to rival larger, more established banks in the east coast by riding the housing market. Think of the WaMu marketing campaign where a guy in shirt and jean make fun of the stodgy bankers. This made them more dependent on ups and downs of the housing market, and when it tanked, so did they.
In contrast, while east coast banks all took big hits from housing market crisis, they did not go down. They had in general a more diversified operation, and probably had better access to the capital market, although that's just a conjecture on my part.
Note that I did not include investment banks such as Bear Stearns and Lehman, who also went under and are all east coast based. They also went all in on the housing market.
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I see a problem in your argument. You bring up all these West Coast institutions that failed, only wamu and Indymac being actual banks. But you compare these institutions to the banks on the East Coast. Seems like you are comparing an apple and 3 oranges to 4 apples. And let's not forget Wachovia.
Definitely a lot of financial institutions on the West Coast do rely heavily on real estate. I think it could have something to do with population density and growth here versus the East Coast. I don't have any stats handy, but weren't most of the housing price booms concentrated out west and the South East?
Countrywide had banking subsidiaries: Countrywide FSB and Countrywide Warehouse.
The difference between CFC and say C, is the the CFC banking operations made their money almost exclusively through mortgages, whereas banks like C other other sources of revenues- credit cards etc...
And you are right about the concentration of housing price booms in the West and the South.
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