IndyMac: A Couple Of Points

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Jul 13, 2008 3:50 pm

There were a couple of interesting points in an article about the now defunct IndyMac Bank, along with my comments: 


 
"The collapse is expected to cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion, potentially wiping out more than 10% of the FDIC's $53 billion deposit-insurance fund."
 
Gee, 10%!!!!!? What would happen with multiple big bank failures? Three or four failures could wipe-out the fund.
 
"The bank will be run by the FDIC and reopen Monday. The FDIC typically insures up to $100,000 per depositor. IndyMac had roughly $19 billion of deposits. Nearly $1 billion of those deposits were uninsured, affecting about 10,000 people, the FDIC said."
 
Show this to your wealthier clients to make sure their deposits are within the prescribed limits.
 
A link to the article is below:
 
http://online.wsj.com/article/SB121581435073947103.html?mod=hpsus_whats_news
Jul 14, 2008 11:03 am

scary, scary, scary.  I have a friend who works for FDIC, and while he never gave me any specifics, he did tell me well over a year ago that a storm is coming. I think it has started.

Jul 14, 2008 11:28 am

Had to scramble this morning and sell a CD that was over insurance limit.  Found it while reiewing accounts over the weekend.  Thankfully, sold at par plus interest, so I eat a ticket charge rather than an E&O claim.  Don't ask me how something that stupid happened in one of my accounts...I'm just damn glad it wasn't IndyMac.

Jul 14, 2008 2:50 pm
Ferris Bueller:

I predict the FDIC will need a government bailout within 6 months.

 
 Yeah, and it will be the Chinese who bail us out!
Jul 14, 2008 5:21 pm
doberman:


"The bank will be run by the FDIC and reopen Monday. The FDIC typically insures up to $100,000 per depositor. IndyMac had roughly $19 billion of deposits. Nearly $1 billion of those deposits were uninsured, affecting about 10,000 people, the FDIC said."



Show this to your wealthier clients to make sure their deposits are within the prescribed limits.http://online.wsj.com/article/SB121581435073947103.html?mod=hpsus_whats_news





That is a very intuitive and useful idea. Thank You.

Jul 14, 2008 11:45 pm

 Did IndyMac have financial advisors?  If so, does anyone know how they are being affected by this?