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07-11-2008, 08:15 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,404
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Never heard of indymac? Big deal or something?
__________________
If your gonna be dumb you gotta be tough
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07-11-2008, 08:20 PM
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#3
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 428
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 Quote:
Originally Posted by Notmuchlonger
Never heard of indymac? Big deal or something?
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From the Bloomberg article above:
IndyMac becomes the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC.
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07-11-2008, 08:23 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,404
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This is exciting!
__________________
If your gonna be dumb you gotta be tough
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07-11-2008, 08:30 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Location: Mississippi
Posts: 4,261
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Quote:
Originally Posted by Notmuchlonger
This is exciting!
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Exciting for my Mother, maybe. She has a cd with them through her brokerage account. But less than the 100k limit so we will get to see how long it takes to settle. Broker tipped me off the other day that this was a possibility. Said it will pay accrued interest as well.
__________________
Full time wuss............
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07-11-2008, 09:04 PM
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#6
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 88
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Quote:
Originally Posted by Notmuchlonger
Never heard of indymac? Big deal or something?
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From the FDIC:
"IndyMac Bank, FSB had total assets of $32.01 billion and total deposits of $19.06 billion as of March 31, 2008."
And more interesting:
"As conservator, the FDIC will operate IndyMac Federal Bank, FSB to maximize the value of the institution for a future sale and to maintain banking services in the communities formerly served by IndyMac Bank, F.S.B."
which means they didn't just have another bank (at least not yet) take over the asset base.
Finally, if folks have assets over the FDIC limit:
" If it is determined that you have uninsured funds, the FDIC will generate and mail to you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the disposal of the assets of IndyMac Bank, F.S.B. This means that you will eventually recover some of your uninsured funds. The FDIC declared a 50% advance dividend for uninsured deposits."
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07-11-2008, 09:20 PM
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#7
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 428
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Also from the Bloomberg article:
After peaking at $50.11 on May 8, 2006, IndyMac shares lost 87 percent
of their value in 2007 and another 95 percent this year.
The stock fell 3 cents to 28 cents at 4 p.m. New York time today.
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07-11-2008, 09:34 PM
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#8
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Full time employment: Posting here.
Join Date: Jul 2008
Posts: 622
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Quote:
Originally Posted by copyright1997reloaded
Finally, if folks have assets over the FDIC limit:
"If it is determined that you have uninsured funds, the FDIC will generate and mail to you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the disposal of the assets of IndyMac Bank, F.S.B. This means that you will eventually recover some of your uninsured funds. The FDIC declared a 50% advance dividend for uninsured deposits."
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So anyone that had $1,000,000 in Indybank just lost up to $450,000 to the miracle of fractional reserve banking?
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07-11-2008, 09:36 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,404
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Quote:
Originally Posted by Frugality_of_Apathy
So anyone that had $1,000,000 in Indybank just lost up to $450,000 to the miracle of fractional reserve banking?
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Cant fix stupid
Crap that was insensitive.
How about that's natural selection at work.
__________________
If your gonna be dumb you gotta be tough
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07-11-2008, 09:43 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Laurel, MD
Posts: 1,239
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Hmm.....what about this little detail.........
IndyMac came under fire last month from U.S. Senator Charles Schumer, who said lax lending standards and deposits purchased from third parties left it on the brink of failure. In the 11 business days after Schumer explained his concerns in a June 26 letter, depositors withdrew more than $1.3 billion, the OTS said.
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07-11-2008, 09:37 PM
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#11
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Administrator
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 16,480
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Quote:
Originally Posted by Frugality_of_Apathy
So anyone that had $1,000,000 in Indybank just lost up to $450,000 to the miracle of fractional reserve banking?
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And to the stupidity of not understanding or of ignoring FDIC limits...
__________________
Numbers is hard...
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07-11-2008, 09:46 PM
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#12
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 88
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Quote:
Originally Posted by REWahoo
And to the stupidity of not understanding or of ignoring FDIC limits...
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Yep, even at a place like PenFed I've been careful to stay close to the NCUA limits.
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07-11-2008, 11:31 PM
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#13
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Full time employment: Posting here.
Join Date: Aug 2007
Posts: 674
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Quote:
Originally Posted by REWahoo
And to the stupidity of not understanding or of ignoring FDIC limits...
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I heard an estimate of $1 billion in accounts exceeding the FDIC limits 
DD
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07-11-2008, 09:42 PM
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#14
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 88
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Quote:
Originally Posted by Frugality_of_Apathy
So anyone that had $1,000,000 in Indybank just lost up to $450,000 to the miracle of fractional reserve banking?
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No, not yet. It only says you will immediately (well, on Monday) get access to the $100k insured plus 50% of the 900k uninsured. So, you would get at least 550k of the 1M back.
The rest depends upon how well the FDIC does with the remaining assets. I would assume there would be at least some, otherwise they wouldn't have felt comfortable giving the 50% back now...
[I just noticed you said "lost up to"...well, worse case yes.]
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07-12-2008, 09:25 AM
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#15
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Moderator
Join Date: Oct 2005
Location: Texas Hill Country
Posts: 7,253
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Quote:
Originally Posted by Frugality_of_Apathy
So anyone that had $1,000,000 in Indybank just lost up to $450,000 to the miracle of fractional reserve banking?
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Worst case, yes. Which goes to show why most of us here stress the need to spread your money around to remain under full insurance limits.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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07-11-2008, 10:46 PM
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#16
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Full time employment: Posting here.
Join Date: Aug 2004
Location: Dallas, TX
Posts: 856
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After the market closed, the shares are trading at only $0.10, so you could buy the bank for <$10MM and then get $32B in assets. Only downside is all the liabilities that come with it, but I'm sure the FDIC would cut you a deal...
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07-11-2008, 10:58 PM
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#17
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Thinks s/he gets paid by the post
Join Date: May 2005
Posts: 3,657
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Having gone through one of these before.... the FDIC usually will run the bank to see what it really has... sometimes a few weeks, sometimes a few months... then they will put it up for bid... trying to slice and dice it so they can get maximum value...
Indymac IIRC did mostly mortgages... the packaged them up and sold on the open market.... so there are some of my old buddies who are now worried about who will service these loans if nobody is interested in buying the service rights.... not a pretty picture... I went through it once....
Probably not the only one that will go under either... interest rates are down and mortgages are still going under...
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07-12-2008, 06:02 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Dublin, Ohio
Posts: 2,448
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So we see the OTC in action Friday afternoon (post 4 PM EST) closing and reopening as something on Monday morning (post 9 AM EST). Next week may be the time that the two biggest Mortgage institutions go; although everyone in the Government says no "they are fine". If the stock price reaches 0 or very close that what happens? We are running out of institutions to take them over? Maybe the China Sovereign Fund? Iraq Oil Fund? Saudi? Looks like all that Oil money will be coming back!
__________________
Proud Vietnam Veteran: Cu Chi 66, 1 Bde, 25ID & Pleiku 66-67 41st Sig Bn 1st STRATCOM - Army Retired Jun 1979.
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07-12-2008, 06:37 AM
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#19
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Full time employment: Posting here.
Join Date: Aug 2006
Location: Columbus
Posts: 769
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I wonder how many depositors were ever warned by the bank that they had excess funds deposited that may not ever be replaced by the FDIC if the bank went belly up. I'll bet IndyMac never turned away anyone's deposits. 
Today's typical computer savvy 15 year old could probably program the bank's computer to red-flag deposits exceeding FDIC limits. The kid probably wouldn't even have to go to the bank to do it, just hack-in from the outside. 
__________________
100% retired and working hard at it.
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07-12-2008, 06:46 AM
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#20
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Full time employment: Posting here.
Join Date: Dec 2006
Location: Tallinn, Estonia
Posts: 763
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IndyMac sounds like something you'd order at the drive-thru.
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