Here we go !!! The moment of truth is upon us. We have waiting patiently for months while the FDIC has experimented with Indymac as laboratory rat with their loan modification program. Now that the FDIC has ran the bank into the ground we can see what it will go for. Check out this article at the following:
http://latimesblogs.latimes.com/money_co/2008/12/indymac-sale-fd.html
Does anyone really believe that the FDIC has looked out for the best interest of the depositors? Isn't it ironic that the long-awaited sale of Indymac Bank may be announced as early as Wednesday, Christmas Eve Day?
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BUYER BEWARE. Indymac depositors who lost funds in the FDIC seizure of IndyMac have sought a few simple - and no cost - reforms to NO AVAIL:
ReplyDelete1. that the FDIC require member banks and their own EDIE calculator to transparently state:
"While the current aggregated insurance limit per taxpayer ID per institution is $250,000 - this REVERTS on 12-31-2009.
If your aggregated accounts are over $100,000 at ONE institution beyond that date, they may not be covered.
2.Furthermore, despite a $700 billion bailout, the FDIC still protects the COUNTRY'S LARGEST Banks and institutions a whole lot better than depositors at smaller institutions. [This includes smaller community banks!]
For the many months Sheila Bair deliberated about IMB's greatly increased risks, almost unbelievably, the FDIC STILL created NO regulation about how they themselves or any financial institution they supervise communicates with its depositors on these KEY issues. Per Jim Devaney, Chief of the FDIC’s Deposit Insurance Section – Division of Supervision and Consumer Protection. "Financial institutions can decide to let a depositor know if they are covered or not. It is the bank’s choice."
WAKE UP, FDIC. We are watching you, Barney Frank, Chris Dodd, and Chuck Schumer.
For more on the FDIC's role in the IndyMac debacle and what consumers need to know about FDIC's lack of transparency, research is at http://www.californiaprogressreport.com/2008/11/a_clear_and_pre.html
fran quittel
francq@aol.com
626-864-1400/cell
Indymac Bank and the FDIC have misled many depositors regarding FDIC insurance. Shortly after the failure of Indymac Bank the FDIC revised its rules regarding qualifying beneficiaries and increased FDIC coverage from 100K to 250K per depositor in an effort to restore public confidence in the nation’s banking system. Unfortunately, for thousands of Indymac Bank depositors it was too little too late. The damage had already been done with thousands of depositors losing their hard earned life savings. It will be interesting to see if the FDIC pays back the money it took from the depositor’s accounts when the bank failed.
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