IndyMac: A Couple Of Points
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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_newsscary, 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.
[quote=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=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?