Feds have seized, closed, and frozen all of its assets. Depositors will have access to ATMs ONLY.
via Bloomberg
July 11 (Bloomberg) -- IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash.
The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.
The Pasadena, California-based bank specialized in so-called Alt-A mortgages, which didn't require borrowers to provide documentation on their incomes. Its home state has been among the hardest hit by foreclosures.
``Given their focus on Alt-A and a heavy concentration in California, they would have suffered meaningful losses in almost any scenario,'' Brian Horey, president of Aurelian Management LLC in New York, said before the seizure was announced. Aurelian is short-selling IndyMac shares to gain from declines.
IndyMac becomes the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC.
The lender racked up almost $900 million in losses as home prices tumbled and foreclosures climbed to a record. California ranked second among U.S. states, with one foreclosure filing for every 192 households in June, 2.6 times the national average.
Advice to depositors: PULL YOUR MAXIMUM ALLOWED CASH EVERY DAY THIS WEEKEND. DO IT NOW. Contact the FDIC ASAP. www.fdic.gov. You're FUCT.
Christ in a cracker, here it all comes.
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scary--it was originally Countrywide, too...
i wonder who's next?
Oh great, monkeyfister
Let's start a bank run. What could go wrong?
Let's assume, because of the kind of optimistic guy I am, that the FDIC is sound, because if it isn't... Even cash won't work. (Gardening and knitting and winemaking might.) Assuming the FDIC is sound, you're insured up to $100,000, and that's going to take awhile to withdraw from the ATM, even in large bills. From the IndyMac page:
Numbers:
There are some things I'm not a "worse is better" guy about. This is one...
UPDATE And we all missed this one, though I'm sure the smart money, if there is any such thing, noted this story back on July 3.
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
Welcome to 1929. N/T
We can admit that we're killers ... but we're not going to kill today. That's all it takes! Knowing that we're not going to kill today! ~ Captain James T. Kirk, Stardate 3193.0
The bank has already been run
That is the definition of a bank run; my father was a banker for 25 years.
I'm Advising Getting As Much Cash Out As Possible...
As per the article, the run has already occurred. Its what killed the Bank-- that and all those "Liar" Alt-a Loans. I'm advising taking advantage early and often of IndyMac's Weekend ONLY ATM funds availability.
Those poor fellow Americans who had money locked up with them, who had no idea, like all the rest of us, that IndyMac would announce their failure at dinner time on a Friday, have just had their life savings seized. They should AT LEAST grab that $250 - 350.00 max withdraw daily to get back at least SOMETHING to live on while the FDIC plods through their claim. The RUN already happened. The ATMs will be kept filled by the FDIC THIS WEEKEND ONLY. I suggest you get to the stick and brick branch to withdraw, as opposed to the singular, extension ATM.
Grab that $1050 and contact www.fdic.gov immediately for your larger claim.
I'm REALLY grasping at optimistic straws for anyone involved here. Good luck, and I am deeply sorry for how fuct this really is.
--mf
From High Atop The Mighty Corrente Building... Comes Wisdom.
So what should we do with our money?
Seriously, with all this going on where is it safe to put/store/invest your savings?! This shit is scary.
My decision...
... was to put the money in tangibles, i.e., the house. I don't know whether that was a good or a bad thing, but it's what I did. Shelter is key...
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
Next thing you know
PB2.0 will have to open a microcredit online venture!
That is actually not a bad idea....
Thinking in terms of actions, as some on this week's PB 2.0 thread wished.
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
Why do you think I mentioned it?? :-)
Social entrepreneurship (here and abroad) is something that PB2.0 should promote, in my not-so-humble view.
excellent idea--a credit-union type thing
tons of nonprofits/unions/social service orgs have them.
Sorry to quell the panic
Any bank will accept your IndyMac check on Monday under the same conditions that they would have accepted it on Thursday.
You can write checks on your IndyMac Bank account at the mall this weekend. Indy Bank is now IndyMac Federal Bank. Your checking, savings accounts and CDs at Indy Mac are guaranteed up to a combined $100,000.
If the FDIC were to hesitate for a moment to make good there would be a run on every federally insured bank in the country starting on Monday.
FDIC says:
*******************
III. Acquiring Financial Institution
All non-brokered insured deposit accounts have been transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), Pasadena, CA ("assuming institution") a newly chartered full-service FDIC-insured institution. The OTS appointed the FDIC conservator of IndyMac Federal Bank. All insured deposit accounts will be available as usual during regular business hours starting July 14, 2008.
Principal and interest on insured accounts, through July 11, 2008, are fully insured by the FDIC, up to the insurance limit of $100,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts can be insured for more than the $100,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit...
V. Banking Services
The Automated Teller Machines (ATM) will remain available.
As of July 14, 2008 you may continue to use the services to which you previously had access, such as, online service, safe deposit boxes, night deposit boxes, wire services, etc.
Your checks will be processed as usual. All outstanding checks will be paid against your available insured balance(s) as if no change had occurred. IndyMac Federal Bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact IndyMac Federal Bank, Customer Service Department, at 800-998-2900. An account representative will clear up any confusion about the validity of your checks.
All interest accrued through Friday, will be paid at your same rate. IndyMac Federal Bank will be reviewing rates and will provide further information soon. You will be notified of any changes.
Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to IndyMac Federal Bank. If you have any questions or special requests, you may contact a representative of your assuming institution at 800-998-2900.
********************
When the Savings and Loans were going under in the '80s all deposits were redeemed, even those in excess of $100,000. What had happened was that desperate institutions had offered high interest rates and institutional investors and the super rich took advantage of those rates.
They gambled that FSLIC would make them whole beyond the guaranteed limit and that's exactly what the federal insurance fund did - at great loss to the taxpayer. I take it that's not been the policy lately.
Where to put your money?
Well, if you think financial Armageddon is here there is one investment that is safer than federally insured accounts. That would be Treasury bonds. You can get bonds whose yields are adjusted for inflation. They are backed by the taxing authority of the United States.
Long before T-bills ever were to become worthless the government would have "called in" all the gold its citizens were holding. Once T-bills become worthless you'll be able to acquire tangible assets, like a house and canned goods, with the same currency you'll be using to hold on to your assets, i.e. your gang, guns and ammo.
Thank you, CMike. Angst is one thing, panic another...
Now, if we start hearing bad stories about the FDIC....
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
w00t, I'm ready
...bring on the collapse. I've got more reasonable access to gang members, guns, and ammo than I do money!
me too
i moved to a "better" neighborhood a few years ago. might turn out to be a good thing that i've kept up with some of my buddies in the old one, though.
Hehe
...I'm currently atop a mountain and my neighbors are (1) a gunsmith and (2) a vineyard. If I pull in my old city friends or recruit from the redneck stock, I could rule thunderdome!
Starting to build my chain mail bra right now...
a vineyard!
wine and stuffed grape leaves! hard to go wrong there. i'm jealous.
me, i live near the railroad tracks and a homeless camp. the old neighborhood had train tracks and a homeless camp too, with the added amenity of driveby shootings. probably all useful in case of apocalypse, but not nearly so tasty as what you've got.
oh well, i've got 12 cats. i should get to work on training them to go out and hunt mice and birds for me.
The vineyard is new
...and I'm stoked about it. Both wine grapes AND french truffles (the legit black kind... can't remember the name at the moment) can be grown here because of the weather and humidity -- IIRC, we're about the same latitude as Rome, Italy. There was a big deal about the truffles because no where else in the world outside of france and a farm near me (it's a county over) can produce them. The NYT actually wrote about it because gourmet chefs were buying from here.
Anyhoo, the vineyard beside me is going up in real time so we're going to get first hand information on how it turns out. There has been talk of turning the area into a new wine country which if it happens would be great because we're a persistent poverty county.
I used to live near a set a tracks too when I was in the city but it sounds tamer than where you live. Drivebys hadn't made it there yet.
truffles too!
wow. nifty neato keen. it would be pretty cool too, if you could blog about that here. i'd lovew to see photos and follow the progress [although waiting for grapevines to produce is a bit like watching paint dry].
we've had a few of our family reunions in tn, not because any of us live there, but because it's reasonably central. went on a tour of a winery [with winetasting!] one year. pretty cool to think that industry might take off within a days drive of where i live.
we've got some vineyards and wineries here in florida, but the only grapes that are really happy growing here are muscadines and scuppernongs, which are definitely an acquired taste.
the truffle farm is a county over
...but I do know that a lot of good truffles still grow wild here where I live. My SOs mom who grew up dirt poor used to eat handfuls of them as a kid -- she knows how to find them in the wild. Ironically, if they'd known how valuable they were back then they could've made a small fortune selling them.
I may do something with the vineyard when it gets going. They've been building irrigation and making the first tresses of late. Blogging it would be a good excuse to get more info out of them. I think they're going to build a winery too but I'm not sure.
Oh and muscadines used to be the primary wine grape in TN and the South. I think the new wine grapes may be restricted to East TN growing conditions but I'm not sure. I don't think all of them would grow well in Middle Tn and definitely not out west. If we can get it growing folks will finally have a cash crop to replace what was lost when families stopped growing tobacco!
Come to think of it, Biltmore has a winery in Asheville, NC so I'm not sure why it's taken so long for folks to realize it can be done here.
UPDATE: Hubby informed me that a building is going up and it looks like a winery is in the works. He's excited about blogging it too. It's literally within walking distance (well it would be if I didn't live atop the mountain -- no way I'm walking up my own driveway).
oh, but think of the exercise you'd get!
we had muscadine wine [or was it scuppernong? i forget] on fathers day, from georgia. lighter and not nearly as sweet as any of the others i've had. went very nicely with bbq ribs and corn on the cob.
please do blog it. pleeezzze?
I've never had muscadine
...and I kinda feel bad over that fact, like it's a missing tradition/ritual I should engage in. I don't know what scuppernong is. Oh and I really am thinking about blogging it. I think it would be a lot of fun if the owners are game.
Oh and no mountain walking -- my driveway is a freaking road!
scuppernong
a variety of muscadine
both words are a lot of fun to say.
I miss scuppernongs. Big, fleshy grapes, monster grapes.
and tnjen, should you need guidance on your bra-buildin' project, CRAFT Magazine had an article on chainmail; that or contact your nearest Society for Creative Anachronism, who knows about such skills.
sca
yep. they would probably be a good source of a few skills we might want to relearn. ;)
i worked for a country veterinarian in high school years ago, one whose clients really did pay in other ways if they were short on cash. one of them provided us with homegrown scuppernongs. mmmmmmmm.
to remind, the World Bank audit is coming up....
and it might not have nice things to say about any of our financial federal institutions.