June’s story

As I read through all the posts on indymacdepositors.com I realize that my story resembles so many others. An Indymac Bank representative told me that my savings were safe, I believed him and ended up loosing part of my hard earned life savings.
On September 12, 2007, I opened a single checking account at Indymac Bank with my daughter as a beneficiary. I always knew that the FDIC would insure up to $100,000 so I was careful to stay at that amount. A couple of months later when the rates were falling I called the bank with the intent of closing my account. The Indymac rep told me they had new higher CD rates and that I should transfer my savings and could even increase the balance. Knowing about the $100,000 insurance limit I asked how it could be safe. He told me that if I put another name on the CD it would be insured for up to $200,000. I gave him my daughter’s information and a few days later on November 06, 2007, I sent an additional $50,000 to Indymac and the account was changed to a CD with a new number. I felt secure and was ready to forget about the money until I retired in a couple of years.
It wasn’t until I got a letter dated July 15, 2008 from the FDIC that I woke up. The FDIC sent me a Receiver’s Certificate in the amount of $55,621.00 for my account that had been set up with two names. The rep put my daughter on the account “In Trust For” along with a fictitious middle initial (she has none). I found out in the next few days that the account was only insured for $100,000. I was in complete shock. I reread the letter and it still made no sense. How could this happen when I had the guidance of one of the banks own representatives. I called the bank and was told that the first available FDIC agent couldn’t speak to me for two weeks. I sprung into panic mode and called everyone I could think: consumer groups, an email to Niki Tsongas- my Congresswoman, a MA lawyer, and the Attorney General’s office. On August 10, 2008, my appointment with the FDIC agent arrived and I was told there were many stories from customers that received the wrong information from Indymac. If the bank rep had set it up as a joint account it would have been insured. It was suggested I call the Ombudsman office. Two days later I was told by a person in that office that even though the bank may have given people the wrong information, Indymac no longer existed, therefore there was no one to answer my complaint.
Working in a public school I teach responsibility and values for an honest life everyday to my students. I voted for hope in the last election and now I watch, with all my fellow Americans, the billions given to bailout big companies and banks that took huge risks and were far from honest in their dealings. I am trying to be hopeful that there is one leader out there that can stand up for all of us that were misled and lied to by Indymac Bank. The FDIC insurance increase should be retroactive to cover all the victims of the Indymac failure. In the context of all the current bailouts it’s simply the right thing to do.