If there is anyone who has received a reply from the FDIC, please let lisa or myself know.
If you have any of the following experiences, we would like to know:
1. correspondence from a member of Congress including Barney Frank, Chris Dodd, Chuck Schumer, Henry Waxman, Dianne Feinstein, Barbara Boxer, Adam Schiff, Jane Harman, Barbara Lee?
2. documentation from IndyMac or the FDIC regarding information that was provided to you regarding the set up of your accounts
3. any record of your communications with the FDIC?
4. have you been contacted by any member of the media?
thanks,
fran quittel
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I am greatful someone has started a blog such as this. I was lied to by Indymac and the FDIC. More posts will follow.
ReplyDeleteThank you,
David
andrew gray and david barr are at the FDIC: angray@fdic.gov and dbarr@fdic.gov. I wrote the FDIC on 7-20 as below.
ReplyDeleteGentlemen and Ladies;
I am attaching your news release and am requesting direct answers and accountability as well as relief.
I am a small business/sole proprietor corporation with corporate checking and savings account at IMB. These were operating accounts, responsible for payroll, receiving client payments and holding funds earmarked for retirement. I believed I had FULL coverage on both accounts.
At the time of your takeover, my business accounts, which also received client payments electronically, held two documented liabilities:
A. in the operating account, there was an outstanding payroll check in the approximate amount of $4,000. for a payroll that was run on 6-30-08.
(The check had been run but was not yet cashed.)
B. there was also an amount of money of approximately $40,000 that represented a 2007 401K (employer/employee matching) the paperwork for which was established in 12-2007. that was being held in the account pending the filing of the 2007 corporate tax return, which was being filed on extension.
These were bona fide, verifiable liabilities which can be documented by responsible third-parties.
Nowhere in your regulations or website do you offer any information regarding business operating accounts when small businesses are regularly receiving payments from clients and disbursing them or holding payroll or retirement contributions in advance of tax filings.
Similarly, while you verified our accounts electronically, this apparent use of electronic accounting was “one-sided”, giving no notice to any consumer who had electronic payments (including social security) flowing into their accounts, or to businesses holding retirement fundings in advance of extension tax filings or preparing payrolls. It seems inconceivable that you engineered your takeover for 7-11, a date on which you had to know, as FDIC experts, that you would clobber business people who had transferred operating funds into their accounts in preparation to run electronic payrolls on 7-15, with no abioity for corrective action over an entire weekend.
In terms of deceptive business pratices, your agency appears to have literally swooped down and taken temporary and legitimately set aside funds telling us, after the fact, that this is legal when you website contained no information regarding this contingency, nor do you oblige any depositing institution with the requirement to provide accurate information to depositors. This is preposterous.
The press release issued by Andrew Gray (attached) appeared to offer some hope, but it is in fact only another misleading document.
These are the practices that require reform within your agency, not elsewhere, but inside your internal operations:
1. Nowhere on your website do you provide information for corporate operating accounts, and if you call the FDIC, you get zero information from your supposedly "trained" personnel.
(I spoke with one of your deputy directors who at first said that while she was not knowledgeable about this type of transaction, eventually she said it was possible to establish "sweep" accounts investing the overage in Treasuries on a daily basis so that a business account did not remain at risk.) I presume to say that of this date, this type of information is not provided by your Agency at all - only after the fact "we have reduced your account by XYZ dollars.
2. Further, instead of wreaking havoc on small business, there was a simple solution, that all credit cards and even mileage plus accounts use to alert consumers to how much of their credit they have used or to their miles which are expiring:
You simply establish a requirement that monthly statements to depositors include this statement in bold red:
"This month your account is (accurate % replaces this example) 50% FDIC insured.
Please call our customer service line at ______________ to discuss your options."
This would actually be helpful!
3. Your news releases need to be backed by real help, not just a come-on for injured consumers to self-identify so you can take away their funds.
4. Your advance information needs to cover depositors with business operating accounts processing payrolls, receiving client payments and holding retirement moneys in advance of tax fiings, as well as consumers with electronic payments flowing into their accounts on a regular basis, particularly Social Security recipients. In other words, if you want to bve helpful, make your business practices transparent.
In a week’s time, you have turned my life upside down, I want to be sure that I and others are heard and responded to. If hope you are all interviewed by important media focused on finance and the FDIC, and I am requesting your call to set up a meeting with me and also to explain to me how you are going to restore my hard-earned assets.
It is entirely distressing to see your agency inflict what is really “legalized larceny” .
there is a study of the FDIC's deceptive practices - as entirely allowed by Congress - at the california progess report.
ReplyDeletehttp://www.californiaprogressreport.com/2008/11/a_clear_and_pre.html