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Old 07-11-2008, 05:49 PM
 
Location: Great State of Texas
86,093 posts, read 69,937,493 times
Reputation: 27520

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Another one bites the dust.
The FDIC is going to have to borrow the Fed's printing press soon.

IndyMac Shut Down, to Be Taken Over by FDIC - Real Estate * US * News * Story - MSNBC.com (broken link)
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Old 07-11-2008, 05:53 PM
 
Location: Chino, CA
1,458 posts, read 2,899,953 times
Reputation: 546
I responded to this in another thread.... and why would they have to borrow from the printing press? That's one of the functions of their existence, as an Insurance Institution for cases like this.

Oh well, I guess it all doesn't matter now. Sock this one down as another kill thanks to the media and a Senator's loose mouth.

IndyMac Bank Closes, Transfers Operations To Federal Gov't - Money News Story - KNBC | Los Angeles

"The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Sen. Charles Schumer of New York, according to the OTS. The letter expressed concerns about IndyMac's viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts."

Deposits:
Deposit inflows in the three days prior to June 27, 2008: $31.2 million
June 26, Senator Schumer's address
Deposit outflows beginning June 27, 2008: $730.2 million through July 7 and $1.3 billion through July 10

They were trying to work things out and was still receiving deposits until the senators remarks. Oh well, lost jobs and probably more banking institution consolidation. I guess BOA and the bigger institutions can get bigger and we'll have no choice but to bank with them instead.

-chuck22b
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Old 07-11-2008, 06:09 PM
 
Location: Great State of Texas
86,093 posts, read 69,937,493 times
Reputation: 27520
Chuck22b - the FDIC does not have infinite reserves. They have a fund of approx $49 billion that is covering deposits of $3 trillion.

Up to $100K is insured ..after that depositors can wait up to 99 years to get the rest of their money.

FDIC: Who is the FDIC?
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Old 07-11-2008, 06:18 PM
 
Location: Chino, CA
1,458 posts, read 2,899,953 times
Reputation: 546
Quote:
Originally Posted by HappyTexan View Post
Chuck22b - the FDIC does not have infinite reserves. They have a fund of approx $49 billion that is covering deposits of $3 trillion.

Up to $100K is insured ..after that depositors can wait up to 99 years to get the rest of their money.

FDIC: Who is the FDIC?
Yes, obviously, what institution would actually carry the full amount that they insure? There are probabilities and formulas out there to determine the likely hood of a failure etc. With today's financial environment I would hope that the FDIC would actually carry more in their reserves than usual.

Anyways, I hope most people are aware that the FDIC insures only up to 100k... or else they are up for a rude awakening.

I'm just a little tired of the ignorance and herd mentality prevalent in America and in the "investing" circles.

-chuck22b
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Old 07-12-2008, 09:59 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,473 posts, read 13,422,355 times
Reputation: 6344
I'm tired of sheeple. And people that use the word "Sheeple."
HA HA HA HA HA HA HA HA HA!

You know what? This recession is gonna hurt.
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Old 07-12-2008, 02:39 PM
 
655 posts, read 698,794 times
Reputation: 240
I'm amazed that it was obvious for MONTHS that this bank was going to fail and still 10,000 customers had over $100,000 in their accounts. How do people this ignorant end up with this type of cash? Good grief! I check my credit unions ratings monthly. If I so much as see a blimp in their business model, I move my cash.
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Old 07-12-2008, 04:24 PM
 
Location: Great State of Texas
86,093 posts, read 69,937,493 times
Reputation: 27520
I scattered my money around to several credit unions last December right when problems were surfacing. And I do go back and check the rating on these banks regularly.
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Old 07-13-2008, 06:10 AM
 
4,963 posts, read 3,933,366 times
Reputation: 2917
I have two properties with mortgages from indy mac. So if I stop paying them, can I get a bail out too!!

Dont think so.

d
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Old 07-13-2008, 10:47 AM
 
3,031 posts, read 8,156,502 times
Reputation: 830
I don't put much stock in "FDIC Insured". If a large number of banks fail (a la The Depression), no way is the FDIC going to be able to cover all the allegedly "insured" deposits.
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Old 07-13-2008, 10:59 AM
 
Location: US
1,189 posts, read 3,553,982 times
Reputation: 803
Quote:
Originally Posted by findingmesomeday View Post
I don't put much stock in "FDIC Insured". If a large number of banks fail (a la The Depression), no way is the FDIC going to be able to cover all the allegedly "insured" deposits.

Why not? All they have to do is fire up the printers.
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