Saturday, July 12, 2008

FDIC Takes Over IndyMac

Interesting to see how the FDIC operates... in any case amid all the news of Fanny Mae and Freddy Mac, Southern California-based mortgage lender IndyMac has been taken over by the FDIC as of late Friday evening and is now IndyMac Federal. They were unable to sell shares to raise private capital, as WaMu, Wachovia, and Citigroup have done before. One can still make withdrawals and deposits and from a customers perspective should not be operating much differently than before.

Those with insured deposits (less that $100,000) should see essentially no changes as the bank transitions to FDIC conservatorship. Those not insured (with deposits over $100,000) can make a deal next week to recover half of the non-insured amount. Better than nothing. Still a hard lesson if this amount is significant.

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