Posts tagged "pasadena"
IndyMac Goes Bankrupt - What You Should Do Now
By now, most of you have heard that the FDIC has taken over IndyMac Bank. IndyMac made its name in the industry by offering mortgages to consumers who were not able to document their income, and as loan defaults kept piling up, the bank was no longer able to stay afloat. The FDIC will continue to operate the bank under the name IndyMac Federal Bank for a transition period and then sell it back to the private sector.
If you had money at IndyMac:
- If you had $100,000 or less in the bank, your money is fully insured and you can withdraw it via check, ATM or at the branch.
- About 10,000 customers had more than $100,000 in their accounts. If you are one of these people, the first $100,000 is safe, and the FDIC is advancing half of the remainder until a final settlement. Whether you get more depends on how much the FDIC can get for the bank’s assets when they return it to private hands.
If you didn’t have any money at IndyMac:
The FDIC maintains an internal watch list of some 90 banks that are in a precarious situation. They keep this list confidential, since publishing it could trigger a run on these banks which could them force them to go under.
So use this as an opportunity to take what happened with IndyMac as a lesson and never keep more than $100,000 at the same institution.
