Greetings to all blog readers:
Despite numerous calls, letters and emails to Congresswoman Jane Harman’s office, Senator Barbara Boxer’s office, and Senator Dianne Feinstein’s office, we have no movement in the area of, “Yes Constituent, let me help you get your savings back.”
I have had numerous reports from fellow Indymac Depositors, who have heard the same as me: a mere “I will keep your comments in mind if the topic comes up.”
At least we have Congressman Waxman, who has written the strongest letter to date addressed to Chairman Barney Frank.
To all the readers: I have a list of testimonials I could paste on 8 x 11 paper from here to Pasadena, but everyone has pasted their name, address etc. If you are the FDIC reading this, I do not know how you sleep at night. If you are a former Indymac executive, you should go someplace warm for what you have done to the lives of many. This is the Internet, so we need some sense of decorum, which is more than you had, stealing from customers & getting off Scot free.
I will post the pictures from our FDIC demonstration soon, and hope that Karma serves all.
Copy of letter sent to Pa Senator Robert Casey, PA Senator Arlen Spector and Rep Todd Platts, Senator Grassley regarding IndyMac failure by Keith Brown
February 20, 2009
I am a retired person who unfortunately had funds in excess of the FDIC insured limits in CDs at Indymac Bank at the time of its collapse at subsequent takeover on July 11, 2008.
It appears at this time that my loss will be $ 74,980 and that no further FDIC payout will be made as a result of the recent sale to IMB Management Holdings. The FDIC website states “uninsured deposits will likely remain liabilities that will not be reimbursed.”
To add insult to injury, the proposed FDIC’s model is to limit the intended buyer of IndyMac’s potential losses by promising to cover almost all losses in excess of 20 percent of the portfolio in exchange that the buyer be required to offer mortgage modifications to IndyMac customers on terms specified by the FDIC, and fails to adequately consider the consumer protections inherently afforded by the agency in it’s role as receiver under federal law. At the present time, there is insufficient evidence that the FDIC has included uninsured depositor interests as part of the intended IndyMac sale. So, it appears to me that the Buyer, at great discount, bought the failed bank and is additionally protected by the FDIC for a great percentage of any losses on loan modifications, yet I as a depositor have been forgotten with little hope of reimbursement for a large part of my retirement savings. I feel like I and my fellow depositors were “sold out” in order to make a quick sale, clear the books of the FDIC who were in first position, and it smells funny that such a deal was cut for some Wall Street money men.
This news story from is revealing; Feb. 19 (Bloomberg) — J. Christopher Flowers, whose private-equity firm bought a stake in California’s failed IndyMac Bank, said “low-life grave dancers like me” stand to make “a tremendous fortune” from the financial crisis.
Some of the best opportunities will be in the purchase of assets from governments that were forced to seize failing financial institutions, Flowers, 51, said during a panel discussion in New York today. His “grave dancer” remark drew laughs at the event, sponsored by Source Communications.
It appears that Mr. Flowers and his partners have taken advantage of the FDIC at Depositors’ expense.
Furthermore, there is evidence of Gross Regulatory Malfeasance by the Office of Thrift Supervision. The Treasury Department’s Inspector General’s reported that a senior official of the Office of Thrift Supervision (OTS) knowingly allowed IndyMac to conceal the depth of its financial problems only weeks before it failed by falsifying a key financial filing. IndyMac was allowed to record capital contributions in an earlier period than received, but that the “circumstances and accounting of this transaction as described by OTS are unclear and the documentation by OTS was ambiguous and incomplete.
And let’s not forget that Senator Charles Schumer caused the “run on the bank” by publicly releasing a letter that was critical of the OTS in regulating Indymac. His charges were likely on the mark, but the fact he went public with them prevented an orderly resolution and created a disaster for me and many others – irresponsible and bad judgment in my opinion..
Within two months of Indymac’s failure, FDIC raised its deposit insurance coverage from $100,000 to $250,000 per depositor, too late to help me and 10,000 other Indymac depositors. But as previously stated, the FDIC is willing to help insure the Buyer’s losses (but presumably will not share in any profits that could help offset depositor losses) Perhaps the FDIC should be asked a few questions about this arrangement.
It appears from my research that I will be limited in the losses that I may deduct on my Federal Tax Return. The lost funds had been taxed when I earned the money prior to investing in several CDs, I paid tax on the interest earned on the CDs each year, and now that I have suffered the loss, I am not permitted to deduct the entire loss for income tax purposes. Quite a system we have…
To summarize, an irresponsible Senator caused a run on the bank, the OTS did not properly enforce its regulations and demonstrated malfeasance, the regulator who specifically allowed the falsification (and had done so previously at another bank) has been placed on administrative duty and presumably continues his salary, the Buyer of the failed bank gets an FDIC guaranteed deal against their losses without regard to depositor losses, there is no retroactive increased insurance coverage limits for me and other depositors, and I cannot deduct my losses on deposits on which I had already paid taxes.
I have worked for over forty years, owned my own business for several years, tried to live in a financially responsible way, paid my taxes as a responsible citizen and have learned the harsh reality of incompetent and irresponsible government action (or lack thereof)
I am now asking for some relief to restore my lost retirement funds.
I ask that you consider action to retroactively apply the $250,000 FDIC insured limit to July, 2008, the event that caused the FDIC and US Government to increase limits.
Although the Indymac investigation for fraud has likely diminished or ended since the sale by FDIC, I ask that the investigation continue, since there should be punishment for any perpetrators and I believe that tax deductibility improves if the loss is a result of theft or fraud.
Increase oversight and enforcement of regulations for financial institutions in the future so that others may not have to suffer loss of their hard earned money.
At least change the tax code to allow dollar for dollar loss of deposits in failed banks, regardless of percentage adjusted gross income or AMT considerations. Also, please consider allowing capital loss carryover greater than $3,000 per year. At my age, I may not live long enough to deduct those losses on future returns.
Thank you for listening to a disappointed, angry and frustrated citizen.
Greetings to all!
On July 13, 2009, we as Indymac depositors marked the anniversary of being robbed right out of our bank accounts by demonstrating our frustration, anger (your word here)in front of the FDIC Western Headquarters at 40 Pacifica in Irvine, CA.
We still have no answers, but that we are supposed to be grateful to the FDIC for graciously giving us 50% of our deposits back, while mortgage holders get their loans restructured & GM gets bailed out of bankruptcy.
Since Congress passed the Stimulus package, which has not stimulated anything, except anger among those paying for it we have seen a further decline in consumer confidence, employment and the overall business climate is still very chilly. In this Stimulus package,a increased insurance amount of $250,000 passed 10 weeks after the FDIC took over Indymac. The increase was double and a half the old protection! Now it has been made permanent (You may search H.R. 786 for more on this). Built into this package is increases for inflation and a decrease in cost to the government over the next 10 years, to eventually show a surplus.
The FDIC shall be held accountable for not funding their insurance. We will continue to pursue this until we prevail, either by legislation, or in the court system. The FDIC is using our money to pay its attorneys to defend its position against us. What an ironic situation.
The FDIC can just enter a bank, own the accounts & give you what the erroneous bank records shows it should owe you, even if the bank made horrific mistakes in record keeping, and giving advice on structuring accounts for insurance protection.
I guess William Black’s book entitled “The Best Way To Rob a Bank Is To Own One” kind of summarizes how I feel about the FDIC, for taking over a bank not on the wtch list, fire selling it & retaining some of the assets for itself.
Year to date 2009, the FDIC has closed 52 banks. Smell fishy to you? How many of these underfunded critters are out there? Could my new bank be next?
Just follow the money trail….
We are planning to hold our anniversary gathering at the new FDIC headquarters at 40 Pacifica, Irvine, CA on July 13th 11am to 1 pm. Please, if you are a depositor, bring your signs. Bring yourself water, sunscreen, maybe a hat if you like.
At this time, we have not yet received the support of Congresswoman Jane Harman. Yesterday, I spoke with a representative for her Wilmington, CA office, Mary Bautista. Ms. Bautista strongly advised that we continue strengthening our grass roots effort to get the attention of more Representatives. We cannot be ignored if enough of us have the same issue brought to the fore. Please write and call your Senators. Please write and call your all members of the House and Senate. The contact info for all of these people are on our web site, as well as the web.
P.S. If you don’t know who represents you, find out now. Take back control of your life, and our government. It was of the people, by the people for the people, not just the chosen Madoff victims.
As of yesterday, we have four representatives actively behind our cause to recoup our funds. Adam Schiff, Ed Royce, Linda Sanchez and Henry Waxman are all standing up for us. We now need 51 more in California to support us & any and all that we can get in other states to support us. Then we can get the attention of Chairman Barney Frank and start an autopsy of the books at Indymac & the FDIC.
Please write and call your Congressional Representatives. Please call and write Senator Diane Feinstein & Senator Barbara Boxer. Please do it now. Please do it for yourself.