Evidently IndyMac was being investigated for some time now. According to recent news, customers of IndyMac Bancorp have been waiting in long lines to withdraw funds. The media has focused on the angry bank customers.
I have not read one critical piece of the puzzle in the media.
If the depositor had $100,000 in the bank, they are able to get it all back. If the depositor had more, they will get 50 cents on the dollar. Therefore if the account contained $150,000 the customer will be able to withdraw $125,000 back. What happenes to the balance of $25,000? Will the $25,000 be lost or will the FDIC pay the customer the $25,000? If so, when? Does anyone here know?
Sun City Grand ~ I live here, I work here, I know this community!
The money's gone, just like it is when the stock market dives and the company goes under. I suppose people will blame this on Realtors too.
Excuse me. You must be talking about a bank in another country. That could never happen here, right?
Michael, Ahhhhhh.....that certainly would explain their anger.
Melody, yes, the bank was located somewhere in the Antartica.
The sad part of this is that it could happen to quite a few banks... the panic fed itself until the bank fell.
Absolutely correct Chuck