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Back in business: IndyMac reopens Monday

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posted on Jul, 13 2008 @ 03:49 PM
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Back in business: IndyMac reopens Monday


Back in business: IndyMac reopens Monday

IndyMac Bank, closed Friday by federal regulators, will reopen Monday with a new charter and a new name -- IndyMac Federal Bank.


Analysts fear thousands of IndyMac customers could lose as much as $500 million.

Customers who found locked doors and armed guards Friday afternoon could use ATM cards over the weekend to get to their money, but an estimated 5 percent of the $19 billion deposited in the bank was not insured by the Federal Deposit Insurance Corporation (FDIC).

Indymac's failure, which the FDIC chairman said could add up to be the most expensive U.S. bank failure ever, came as the FDIC's list of "problem" institutions is on the rise.

The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said.

The number of troubled institutions monitored by the FDIC has grown in each of the last six quarters, starting in the fall of 2006 when there were just 47 on the list, the agency said. The last time it approached this level was in the fall of 2004 when the number was 95.

The FDIC does not publish a list of trouble banks out of concern it could spur a bank run, which is what the Office of Thrift Supervision (OTS) said happened to Indymac in recent weeks.

The OTS, which oversaw IndyMac, criticized Sen. Charles Schumer, a Democrat from New York. The OTS claimed that a June 26 letter Schumer wrote to regulators questioning IndyMac's viability prompted a run on the bank in which customers withdrew more than $1.3 billion prompting a liquidity crisis.

(visit the link for the full news article)


Related News Links:
www.knbc.com

Related AboveTopSecret.com Discussion Threads:
Banking regulators close IndyMac


[edit on 7/13/08 by LLoyd45]




posted on Jul, 13 2008 @ 03:49 PM
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This was a rather quick response to a bank failing. The question is, can they continue to do so as more and banks fail? Which bank do you think will be next?



[edit on 7/13/08 by LLoyd45]



posted on Jul, 13 2008 @ 04:09 PM
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Well, in theory, it will but it will be under federal control.

By the way, a statement regarding Freddie and Fannie Mac MIGHT be issued before the Asian markets open. So, that is any time between 11 - 12 GMT.



posted on Jul, 13 2008 @ 04:13 PM
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reply to post by LLoyd45
 


Here is partial list of banks on FDIC watchlist supposedly being in deepest #

Downey, First Federal, Wachovia and Washington Mutual.



posted on Jul, 13 2008 @ 04:37 PM
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reply to post by LLoyd45
 



The former Indymac. that got 'closed' will not be the same Indymac Bank,
they did a legalese and accounting switch to a Federally insured entity...
so the FDIC is safe for another month or so.
on my readings about Indy. they shot their wad on several Billion or so $$$ as several thousand individuals closed their accounts... but nowhere near the ideal of 100% of all account holders being satisified.
Thats the reason why a federally insured receiver merged with
Indy..or was forced to by the Fed.

i also read where Indy could get funds from the 'Discount Window'
even though they were the type of financial institution they were !
~watch as the Fed & Treasury try the proverbial 'hail mary' - game winning - 4th and 10 - 90 yard pass ...in an attempt to win the game !
i say BS




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