FDIC change helps the middle class too…by Congresswoman Jane Harman

Congresswoman Jane Harman responds to Washington Post editorial comment which falsely claimed Indymac victims as a few wealthy investors. Congresswoman Harman aptly describes the average depositor, who had no idea to suspect that Indymac was cooking the books, and an unscrupulous OTC employee overseeing the “Western Region” of banking allowed backdating of funds to prop up the value of the bank, allowing it to accept new deposits, all the way through the day of closing.

Further to that, bank employees, as alleged and proven by many Federal Court cases incorrectly titled accounts in their electronic records, leaving off beneficiaries, and co-owners of CD’s, further reducing FDIC coverage. Since the bank did not provide copies of signature cards, there was NO WAY to know these facts, unless one could get into the computer records, and compare with paper signature cards. FDIC only accepted the computer records as proof of account ownership and titling.

To read the editorial article, please click HERE.