http://www.latimes.com/news/printedition/front/la-fi-indymac16-2008jul16,0,5489094.story
Depositors of failed IndyMac Bank endured long waits in the summer heat for a second day Tuesday, with crowds becoming irate at several branches and customers with large accounts complaining of serious problems in getting their money.
Banking experts said the chaotic scenes risked touching off runs on other banks unless federal regulators quickly cashed out insured accounts and gave depositors accurate information about their funds.
The Federal Deposit Insurance Corp. took over Pasadena-based IndyMac late Friday and has assured depositors that accounts with $100,000 held in a single name or $250,000 in a retirement account are safe.
But many customers have said that when they checked their balances online, tens of thousands of dollars appeared to be missing. And when they went to branches in search of answers, they encountered lines hundreds of people deep and unhelpful staff members. On Tuesday, reports of unruly crowds brought police to branches in Encino and Northridge, although there were no arrests or injuries.
Noelle Gabay of Northridge, a budget analyst for the state of California, said FDIC officials acknowledged that she was owed $213,500 but provided her access only to $99,000.
“My trust in the FDIC is gone,” said Gabay, 49. “The question is now, where do we put our money? Do we buy a bigger mattress?”
Bert Ely, a banking consultant in Arlington, Va., whose clients include financial-services trade groups, said the IndyMac situation was “generating anxieties all across the country.”
“They should have been better prepared for this,” he said, adding that regulatory oversight of IndyMac had been lax.
Author: NightRiderTV
Keywords: IndyMac Bank Run Money Cash Dollar Dow WallStreet Jim Cramer MSNBC CNBC Freddie Fannie
Added: July 17, 2008
