On July 13, immediately after the FDIC takeover, Andrew Gray published a news release citing Sheila Bair's "help to depositors" to re-structure accounts that were over if there were problems with named beneficiaries. After depositors apparently "self-identified", helping the FDIC remove 50% of funds that were over, that release was first changed and the url directed to another release on the FDIC site - without that sentence. Later, the cache file for the release was totally obliterated - as if it never existed.
This is the language of the original, changed and then obliterated release. Given the fact that Congress has been so quick to issue a $700 billion bailout, I continue to wonder why the FDIC's communications policies which benefit itself, banks and their lobbyists far more than depositors - have escaped Congressional scrutiny.
"All bank depositors should also understand that they can have insurance coverage in excess of the basic limits of $100,000 per institution, with an additional $250,000 per institution for IRAs. For instance, subject to certain conditions, single and joint accounts are separately insured, and revocable trusts generally provide $100,000 of coverage per beneficiary. If you have any questions about whether your deposits are insured, we encourage you to consult with your bank or contact our deposit insurance specialists at 1-877-ASK-FDIC. If you find that you are not fully insured, it may be possible to restructure your accounts to bring your deposits below the insured limits. But first get the facts before making any changes in your accounts or banking relationships."
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Fran,
ReplyDeleteWas this comment made by Sheila Bair about restructuring accounts made as a general statement or in responce to the Indymac Bank failure? I really can't see the FDIC allowing restructuring of accounts at a bank after it has already failed. Thanks.