How the FDIC handles a bank situation..and people want gov't healthcare?

[Manedwolf]

ENCINO -- Tempers flared at an IndyMac Bank branch in Encino Tuesday as customers squared off over who should be allowed into the bank first.

At least three police squad cars arrived at the branch on Ventura Boulevard to restore order before the bank opened its doors at 8:00am.

Police urged customers to remain calm or face arrest as they tried to pull their money on the second day of the failed institution's federal takeover.

Federal regulators seized Pasadena-based IndyMac on Friday and reopened the bank Monday under the control of the Federal Deposit Insurance Corporation.

Deposits up to $100,000 are fully insured by the FDIC.

Worried customers with deposits in excess of insured limits flooded IndyMac Bank branches on Monday, demanding to withdraw as much money as they could or get answers about the fate of their funds.

Many weren't allowed in the bank, so FDIC employees apparently took down names and told them to return Tuesday.

Other customers began lining up at 1:30 a.m. Tuesday, and by dawn, tensions escalated because people on the list were getting priority.

One woman who had been waiting in line since 5:30 a.m. said the situation was reminiscent of the Great Depression. "It's a sad day in America when it's come to lines like this.", she said. "Tensions are very fierce right now and they created it, the FDIC created it. We were all civil with each other and wonderful with each other, now they've changed their mind.", she said.

The woman claimed that FDIC employees told her they "knew nothing" about a list on Monday and would not be honoring it.

"So people came here with the understanding that there wasn't going to be a list, we've been out here for hours and all of a sudden they're honoring a list they've emphatically said they weren't going to honor.", she said.

By 8 a.m., about 50 people on the list waited in one line and many more waited in another. Five people were allowed in at a time.

Customers became infuriated, and police told them they could be arrested if they didn't remain calm.

Police stood by at some other branches around Southern California but there were no other reports of problems.

A compromise was eventually reached and employees began selecting customers from each line to enter the bank.

The FDIC has set up a toll-free phone line -- (866) 806-5919 -- and a page on its Web site -- www.fdic.gov/bank/individual /failed/IndyMac.html -- for customers with questions about their accounts.

http://ktla.trb.com/news/local/eveningnews/ktla-mortgages,0,7064488.story

"We'll put your name on a list!" "I know nothing of a list that was taken."

About right for a government agency.

Do people honestly not realize what a bureaucratic hell of getting nothing done "universal healthcare" would be?

[Headless Thompson Gunner]

I have a few different thoughts floating through my head on this one.

First one is, hey, tough cookies.  You were the dumbfrick who deposited way too much money in a bank you should have known was on unstable footing.

My second thought is that none of this mess would be happening right now if not for Chucky The Great.  I wonder if anyone outside of the financial press will make the connection between the unpleasantness in California and the reckless comments of the Senator from New York.

My third thought is, hey, whadya expect from government?

[m1911owner]

A couple months ago I was in the local UPS Store.  A gal in about her mid 20's came in, with a most frazzled look on her face.  I queried her about her expression, and she recounted that she had been waiting in line at the post office for some very long period of time, and had given up and come to the UPS store.

Figuring that a mid-20's gal in Palo Alto had about a 90% chance of being a flaming left-wing nut case, I decided to play with her a bit.  I commented that it was amazing that some people actually wanted the government to do more things for us.

It was fun to watch the expressions on her face as her brain proceeded to short out.   

She then replied, "This administration..."

Cognitive dissonance resolved--"W"'s administration can't do anything right, but if we get the right "progressives" in office, all will be well...   

[The Annoyed Man]

The sad thing is, they're all in it together.

[lupinus]

I don't see the problem.

Came monday, couldn't be handled monday, get on the list for first thing tuesday.

Should the people who had their name on the list had to wait in line again?  An employee made a mistake about the list, *expletive deleted*it happens you gotta wait sorry.

They kept their money in a bank that was failing, they should have pulled out or spread their funds around into various insured accounts.  Sorry if the bank exactly what people knew was going to happen and you waited.

[m1911owner]

lupinus, exactly how many banks do you have your money "spread around" to? 

[De Selby]

First one is, hey, tough cookies.  You were the dumbfrick who deposited way too much money in a bank you should have known was on unstable footing.

How are you supposed to know a bank is on unstable footing, if it's "reckless" and wrong for anyone to say so in public?

[thebaldguy]

I think the point is to never deposit more than $100,000.00 in any bank. Never.

[lupinus]

1911-

I currently have accounts at two separate banks (credit unions if you want to be technical), and my finances are well below the insured limit.

If you are dealing with a lot of money it's your responsibility to manage it properly by spreading it around and also by monitoring the institutions you let handle your money.  If you have over 100k worth of liquid assets sitting in bank acounts you should either spread it around to multiple accounts and/or monitor your bank. 

Don't keep large sums in one account knowing it is insured for less then the balance.  And don't keep it in a bank that is tanking.  This didn't come out of the blue, anyone paying attention knew these guys were going out.

[K Frame]

Not politics.

[K Frame]

lupinus, exactly how many banks do you have your money "spread around" to? 

Four.

[m1911owner]

1911-

I currently have accounts at two separate banks (credit unions if you want to be technical), and my finances are well below the insured limit.

OK, I give you high marks on the "Do as I do" as opposed to the "Do as I say" scale.      :thumbsup:

[mtnbkr]

My checking and short term savings are at one bank.  My long term savings and CDs are at another.  One 401k is at a third institution and another 401k is at a 4th.

Chris

[K Frame]

I wasn't even counting 401Ks.

They're not Federally insured.

My 401Ks are with Fidelity and Vanguard.


Hum...

I think my count is off no matter what...

First National Bank of Marysville (incidental savings and an IRA)

Pennsylvania State Employees Credit Union (incidental savings)

Western Federal Credit Union (my company's CU, incidental savings)

Navy Federal Credit Union (my primary financial institution)

Huntington National Bank (via NRA Banking Services, excellent Money Market rates)

Pentagon Federal Credit Union (incidental savings)

I keep thinking about ditching Pentagon and Western Federal. I joined them for specific purposes, mainly because they were very convenient to where I was working at the time.

As for my 401K and other investment accounts...

Fidelity, Vanguard, Janus, and Dodge & Cox.

[Manedwolf]

Fidelity...the place every other person where I live seems to work.

[Tallpine]

I think the point is to never deposit more than $100,000.00 in any bank. Never.

That one has never been a problem for me