IndyMac: A Couple Of Points
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=hps_us_whats_news
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.
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.
Yeah, and it will be the Chinese who bail us out!
I predict the FDIC will need a government bailout within 6 months.
“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=hps_us_whats_news [/quote]
That is a very intuitive and useful idea. Thank You.
Did IndyMac have financial advisors? If so, does anyone know how they are being affected by this?