This just out:
Regulators take over IndyMac Bank
In a nutshell, federal banking regulators just shut down IndyMac Bank FSB. It will reopen on Monday as IndyMac Federal Bank, run by the FDIC (Federal Deposit Insurance Corporation).
The federal government said it took control of troubled IndyMac Bank today, in what regulators called the second-largest bank failure in U.S. history.
The Office of Thrift Supervision in Washington, the chief regulator of Pasadena-based IndyMac, said it transferred control of the $32-billion bank to the Federal Deposit Insurance Corp.
The Office of Thrift Supervision says, “Depositors will have no access to banking services online and by telephone this weekend, but will continue to have access to their funds this weekend by ATM, through other debit card transactions and by writing checks. Online banking and phone banking services will be available again on Monday.”
Wonder how many IndyMac customers will hit the ATM’s this weekend? The bank *is* FDIC insured (for deposits up to $100,000), so there really is no need to panic.
IF YOU HAVE AN INDYMAC LOAN: According to the FDIC:
If you had a loan with IndyMac Bank, F.S.B., you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to your promissory note with the failed institution. Checks should be made payable as usual and sent to the same address until further notice.
The FDIC has opened a toll-free phone line for customers of the bank.
The number is 866-806-5919.
Hours of operation for the Call Center are:
July 11, 2008 3:00 p.m. – 9:00 p.m. Pacific
July 12, 2008 8:00 a.m. – 8:00 p.m. Pacific
Sunday, July 13, 2008 8:00 a.m. – 6:00 p.m. Pacific
Thereafter: Monday through Friday, 8:00 a.m. – 8:00 p.m. Pacific
This is also the number to call if you think you may have uninsured deposits. Ask for a claims agent.
Customers also can go to a FDIC web page for information.
I suspect this will be all over the news for the next few days…
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Just the first of several I am afraid. Just did some CE work today in a Foreclosure class here in Vegas. The war stories of all the agents on the front lines of this thing was VERY depressing. I met some great people, but this issue is so much bigger than some most suspect it to be.
The class was taught by the husband of the present GLVAR president. He said his wife, the Prez, gets phone calls all the time from reporters all over the world wanting to know what is going on with the Vegas market. He said they mostly never listen to her or get the facts right and are simply reporting what they want to report – regardless of what is happening on the ground. The good story, as slight as it may be, is never getting reported. That type of crap simply exasperates an already impossible situation….
yes I saw this as well, Indy Mac not only had the run that shut them down but they were giving mortgages to anyone all day. It’s only a metter of time before the house caves in on itself and I guess that day was today for Indy Mac…..
“The bank *is* FDIC insured (for deposits up to $100,000), so there really is no need to panic.”
If I’m not mistaken, the FDIC has up to 10 years to repay depositors.
Those with multiple accounts under $100,000 but combined are more that $100,000. are probably screwed. During the S & L mess I had a friend with three accounts each under $100,000 that totaled $230,000. She was reimbursed a total of $100,000. Those at the S & L assured her all the money was insured. There was another S & L across the street. She lobbied Congress to no avail.
It will be interesting to see how many more financial institutions fail in the near future. Times are tough. My mortgage was sold to Indy Mac. I wonder if the feds are going to keep the mortgage loans, or sell them off…
Possibly the first of several, although there was an extremely nice bounce today as Wells Fargo released earnings.