Federal Regulators Shut Down IndyMac Bank
From the Atlanta Business Chronicle:
Federal regulators closed Pasadena, Calif.-based Indymac Bank late Friday -- the shuttering of the largest bank nationwide since the Savings & Loan Crisis in 1991, and a move that will affect two Atlanta operations centers.
The closure also marks the second-largest closure of a bank since 1934, according to the Federal Deposit Insurance Corp.
In a unique twist, IndyMac Bank's closure is blamed, in part, by the public disclosure of a letter by U.S. Sen. Charles Schumer (D-N.Y.), expressing concern about the bank's ability to operate going forward.
The bank had $32 billion in assets and $19 billion in deposits, according to the Office of Thrift Supervision and FDIC.
At the time of closing, the bank had roughly $1 billion in uninsured deposits....
Indymac Bank is the largest U.S. bank failure since Jan. 6, 1991, when the Bank of New England, with $22 billion in assets, failed....
In a statement, the OTS said:
"The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac's viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts."
Sen. Charles E. Schumer (D-N.Y.) , should be charged for and prosecut for causing the run on Indy Mac Bank.
I live out of state and have a number of CD's invested in Indy Mac Bank, under 100,000 . What do I do know to get my money?
Wondering if
These bad loans were made worse by lenders trying their best to make loans to illegal aliens? Even now the banks advertise taking a loan to give your fifteen year old daughter a coming out (quinsineta) party!? How ironic. What a stupid thing to borrow money for... and it is still going on. The legal citizens get stuck with the bill while the lenders who made fat cash get bailed out and the illegal goes back to Mexico with a truck load of furniture that we will pay for!
Where is the journalist who will investigate where the money went? Who will uncover and expose the enormous influence these corporate monsters have exerted over OUR government?
I bought a land lot, the bank setup my account variable 5 years then baloon. My down payment was $10,000 plus closings. What would happen with my account, with my money invested and the pending mortgage. Can I convert that account to one fixed for 20-25 years?
Thanks
Jose Brea