R.I.P. IndyMac
By Barbara E. Hernandez
Saturday, July 12th, 2008 at 10:00 am in Mortgage Mania, The Market.
As several of you may already know, IndyMac is toast. I guess you had to know any spin-off of Countrywide wasn’t going to be a huge success.
WASHINGTON (Reuters) - U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history. …
IndyMac will reopen fully on Monday as IndyMac Federal Bank under Federal Deposit Insurance Corp supervision, but tensions ran high as customers at a branch at its Los Angeles-area headquarters read a notice in the window saying it was closed.
At another branch down the road, a man who said he had more than $200,000 (100,000 pounds) in an account — twice what is normally FDIC guaranteed — argued with a security guard who was closing up.
The FDIC, which will seek a buyer for IndyMac, estimated the cost of the bank’s failure to its $53 billion insurance fund at between $4 billion and $8 billion.
The FDIC has set up a call center for those with accounts at IndyMac. Call 866-806-5919. The IndyMac Web site, which now has FDIC info on it, will be up and running Monday. The L.A. Times also posted a FAQ for customers, which is very, very helpful. Good luck!
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July 13th, 2008 at 7:49 am
Those with multiple accounts under $100,000 but combined are more that $100,000. are probably screwed. During the S & L mess I had a friend with three accounts each under $100,000 that totaled $230,000. She was reimbursed a total of $100,000. Those at the S & L assured her all the money was insured. There was another S & L across the street. She lobbied Congress to no avail.
July 16th, 2008 at 9:44 am
It seems that once again we as consumers are baring the brunt of the financial woes at the cost of windfall profits by those who stand only to benefit from the institutions that make up the financial system in this country. either by fraud or mismanagement these people only report profits and have very little risk when these things happen. What do we do as the little investor?