Monday, July 14, 2008

Bank Run at IndyMac

People lined up twice around the block this morning at the Pasadena, California headquarters of IndyMac Bank. Folks were there to close their accounts and take the money to other banks. It was a old-fashioned bank run like we haven't seen since the Depression.

Have you got money in an IndyMac account? There's no need to panic, and no need to withdraw your funds from the bank either.

Yes, IndyMac failed. But the FDIC insures all bank deposits up to $100,000. Your money was insured by the US government. You'll get it all back. In fact, it never went anywhere. Previous press releases have said that the ATMs are operational, the bank windows reopened this morning and folks with Indymac accounts under $100,000 (or retirement accounts under $250,000) have full access to their money. The only difference is that now the FDIC is running the bank. Essentially, it was nothing more than a management change.

Read the the Los Angeles Times today, on the IndyMac situation: "Customers with $100,000 or less in deposits or with $250,000 or less in a retirement account would have full access to their funds, which are insured by the federal government. . . . . For all depositors, interest rates on most individual accounts would remain unchanged until the accounts mature, the FDIC said."