Run On IndyMac Bank- Are Your Deposits Insured?
ByJust as unions are freshening up their strike signs to try for wage increases, bad news keeps arriving in spades.
The FDIC has taken over IndyMac Bank’s 33 branches and customers are lining up to get their money.
PASADENA, California (Reuters) - Hundreds of worried IndyMac Bancorp Inc customers descended on the company’s branches on Monday to withdraw their money, after regulators seized what was once one of the largest mortgage lenders in the United States.
Regulators took over the Pasadena-based lender on Friday after a bank run in which customers — panicked over IndyMac’s survival prospects — withdrew $1.3 billion over 11 business days, regulators said.
Fortunately the government is stepping in to guarantee the deposits up to the limit which is $100,000.00 per depositor on insured accounts.
The FDIC said the renamed IndyMac Federal Bank will cover insured deposits, mostly up to $100,000, and initially cover 50 percent of uninsured deposits.
“I have $360,000 in this bank, and I was misled by this bank,” said Robert Clark, a Glendale resident. “I gave the names of my mother, my sister and my brother on the account so I thought I would be insured. I don’t know what to do. I really don’t know what to do.”
The FDIC has an Electronic Deposit Insurance Estimator (EDIE) on their website for determining if your money is insured.
As in this case the government steps in to maintain public confidence in the banking system, but perhaps limiting exposure to $100,000.00 per institution is not a bad idea.
Reuters source article here.
2 Comments
July 14th, 2008 at 8:27 pm
Indymac put me into a mortgage 4 years ago. The loan officer said all I would have to do is sign a paper stating I made more money than I did. Now, I’m stuck in a mortgage that the loan officer lied about. Do I have any recourse?
July 15th, 2008 at 8:47 pm
Now that IndyMac is the first of many banks to fail, I think we’re going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that’s a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.
I’m an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don’t think there going anywhere, but you never know. Investments are all risky.
I never thought I would see this happen here in the USA, but here we are….let’s all cross our fingers.
petes2cents.com