Tech & Biz

BANK FAILURE! IndyMac Bank Closed by FDIC

by BMCWrites | July 11, 2008 at 03:21 pm

5088 views | 2 Recommendations | 6 comments

Below is the text of an FDIC news release about today’s collapse of IndyMac Bank:

IndyMac Bank, F.S.B., Pasadena, CA, was closed today by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was named conservator. The FDIC will transfer insured deposits and substantially all the assets of IndyMac Bank, F.S.B., Pasadena, CA, to IndyMac Federal Bank, FSB. Brokered deposits will be held by the FDIC and those insured deposits will be paid off when the insurance determination is complete. IndyMac Bank, FSB had total assets of $32.01 billion and total deposits of $19.06 billion as of March 31, 2008. As conservator, the FDIC will operate IndyMac Federal Bank, FSB to maximize the value of the institution for a future sale and to maintain banking services in the communities formerly served by IndyMac Bank, F.S.B.

Insured depositors and borrowers will automatically become customers of IndyMac Federal, FSB and will continue to have uninterrupted customer service and access to their funds by ATM, debit cards and writing checks in the same manner as before. Depositors of IndyMac Federal Bank, FSB will have no access to on-line and phone banking services this weekend. These services will be operational again on Monday. Loan customers should continue making loan payments as usual.

Beginning on Monday, July 14, IndyMac Federal Bank, FSB’s 33 branches will observe normal operating hours and will continue to offer full banking services, including on-line banking. For additional information, the FDIC has established a toll-free number for customers of IndyMac Federal Bank, FSB. The toll-free number is 1-866-806-5919 and will operate today from 3:00 p.m. to 9:00 p.m. (PDT), and then daily from 8:00 a.m. to 8:00 p.m. thereafter, except Sunday, July 13, when the hours will be 8:00 a.m. to 6:00 p.m. Customers also may visit the FDIC web site at www.fdic.gov/bank/individual/failed/IndyMac.html for further information.

At the time of closing, IndyMac Bank, F.S.B. had about $1 billion of potentially uninsured deposits held by approximately 10,000 depositors. The FDIC will begin contacting customers with uninsured deposits to arrange an appointment with an FDIC claims agent by Monday. Customers can contact the FDIC for an appointment using the toll-free number above. The FDIC will pay uninsured depositors an advance dividend equal to 50 percent of the uninsured amount.

Based on preliminary analysis, the estimated cost of the resolution to the Deposit Insurance Fund is between $4 and $8 billion. IndyMac Bank, F.S.B. is the fifth FDIC-insured failure of the year. The last FDIC-insured failure in California was the Southern Pacific Bank, Torrance, on February 7, 2003.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 8,494 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

-- Bob McCarty Writes

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SOLARLIFE

flagged this story as Good Stuff

at 06:11 on July 12th, 2008

BMCWrites, I like this story. It's good stuff. Will people still bring their money to the bank, or keep it at home like the Brazilians do? Is it true that people having more than $ 100 000 on the account don't get their money back?

Ellwood (not verified)

at 15:49 on July 13th, 2008

Wondering if

These bad loans were made worse by lenders trying their best to make loans to illegal aliens. Even now the banks advertise taking a loan to give your fifteen year old daughter a coming out (quinsineta) party!? How ironic. What a stupid thing to borrow money for... and it is still going on. The legal citizens get stuck with the bill while the lenders who made fat cash get bailed out and the illegal goes back to Mexico with a truck load of furniture that we will pay for!

Where is the journalist who will investigate where the money went? Who will uncover and expose the enormous influence these corporate monsters have exerted over OUR government?

a_in_texas (not verified)

at 12:53 on July 14th, 2008

Agree with the nonsense about loaning money for qinsineta's and the US taxpayer paying for it. Also wondering why the FDIC is covering even 50% of the uninsured depositors.

If you drive a car without insurance, no one steps forward and says "oh, thats ok, let me pick up half of that". Course, its not the governments dollars they are spending, its OURS.

domineaux (not verified)

at 12:47 on July 18th, 2008

Yeah, 1933 a 100,000 protection is like about 2,000,000 would be today.

The security at $100,000 is a friggin joke.

The government cares less, but your next door neighbor doesn't care eitther.

So... if you got screwed out of couple 100,000 dollars no one would care.

Afterall, everyone wants you to be as broke as they are.

Carl C

at 02:48 on April 7th, 2009

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The economy is so much different now. Normal 0 false false false MicrosoftInternetExplorer4 Concern has been growing over the solvency of some banks amid the housing slump and the steep slide in the mortgage market. The pressures of tighter credit, tumbling home prices and rising foreclosures have been battering banks of all sizes nationwide. Normal 0 false false false MicrosoftInternetExplorer4 Banks are in trouble. The banks that need the most help, the smaller banks in communities, are usually the ones that get ignored while the biggest ones, that made campaign contributions we might add, (as we cough sarcastically) are the ones that get the short term loans from the stimulus package. However, after we gave them all that money, they don't want to lend it. Less mortgage loans are being lent, and less aid is available for students. What happened to the short term loan we gave the banks?