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.
Humble Start for FDIC Shift… WSJ article by Ruth Simon & Peter Lattman
To read the article, please click HERE.
A quote:
An FDIC spokesman said the retroactive rescue “would provide a more-even treatment of uninsured depositors since the onset of the crisis.” In response to depositor complaints, the agency has simplified some of its rules on insurance coverage for account beneficiaries. A spokesman for OneWest Bank, formed by private-equity investors who bought IndyMac assets and operations from the FDIC last year, declined to comment. … Of course they declined to comment.
InDY Yardstick Act – HR 5429 – YOUR MISSION NOW!
Greetings Fellow Depositors!
Last week we had a great meeting with Congresswoman Jane Harman in El Segundo. There were 10 fellow depositors who accompanied me from District 36. She took the time to explain the new depositor insurance legislation for consideration by the House, presented by Congresswoman Jane Harman (D-CA) and Congressman David Dreier (R-CA). While meeting with Ms. Harman last week for a “next steps” strategy meeting, I can tell you she really cares, and has worked hard on getting legislation enacted for us. Remember, this is round two.
We have new support in the House, from Congressman Barney Frank as well as the FDIC. So now we need to gain the support of the Senate as the plan is to place this legislation into Conference and have it added to the Financial Reform Bill.
The fastest way for us to gain support is to get signatures on the “Letter of Support” from every Californian you possibly can, to show strength and solidarity for this bill to the Senate, particularly our California Senators. Then we will present these signatures to our Senators and ask that they not only support this legislation, but also encourage their fellow Senators to do the same.
WE NEED EVERYONE’S HELP THIS WEEK!! Please download and print as many copies of the documents that we have prepared for you. First there is the Depositor Letter of Support. This form allows you as a depositor to add your information as well as any of the facts that you would like the Senators to hear about. The second form is a General Letter of Support that you can use to gather many signatures on. Please let those you approach know that their information will never be sold or shared with anyone other than the Senators and Congressmen that we present them to.
So please garner signatures from friends, family, co-workers, strangers, fellow members of your houses of worship, bridge clubs, country clubs or your grocer, postal worker, everyone who is a Californian. On the bottom of each form is a Fax number as well as a US Mail address to use to return the form to me. The Fax will be the fastest and most preferred. You can scan and email back to this address if that works for you as well.
SO PLEASE GATHER AS MANY SIGNATURES AS YOU CAN THIS WEEK SO WE CAN BEGIN OUR PUSH FOR THE SENATORS SUPPORT!!!
IndyMac Depositors meet with Congresswoman Jane Harman
On Thursday, June 3, 2010, Jane Harman welcomed 10 IndyMac depositors to her office in El Segundo, CA.
HARMAN, DREIER “InDY ACT” PROVIDES RETROACTIVE PROTECTION FOR INDYMAC DEPOSITORS l
Lawmaker says ~“We have spent a trillion dollars bailing out Wall Street, the auto industry and banks. It’s time for more help for Main Street.”~
Washington, D.C. – Reps. Jane Harman (D-Venice) and David Dreier (R-San Dimas) today introduced H.R. 5429, the “Investor Deposit Yardstick Act” (InDY Act) to raise retroactively the limit on the insured savings of depositors in banks that collapsed between January and October 2008, when the federal government raised the FDIC insurance limit from $100,000 to $250,000 per account.
The largest savings and loan in the Los Angeles area, IndyMac, failed in July 2008, wiping out $233 million in savings from approximately 6,500 depositors overnight. Their savings were insured only up to $100,000 per account.
The legislation would also retroactively protect the savings of 1,500 depositors in five other failed banks in Florida, Montana, Arkansas, Kansas and Nevada.
“Our bill will restore to IndyMac customers what they suddenly lost in July 2008, and treat them as equals to other Americans whose savings were swallowed by the economic crisis,” said Harman. “Congress can make these people whole again. We have spent a trillion dollars bailing out Wall Street, the auto industry and banks. It’s time for more help for Main Street.”
“Seeking fairness for former IndyMac depositors has been a priority since the bank’s takeover in the summer of 2008,” Dreier said. “Their losses were no less difficult and no less tragic than those that occurred later that same year. It is only fair that the families and small business owners who kept their savings with IndyMac receive the same protection as those who lost funds at other financial institutions but were covered by the higher deposit insurance amount.”
HARMAN, DREIER “InDY ACT” PROVIDES RETROACTIVE PROTECTION FOR INDYMAC DEPOSITORS Congressional Desk
American Chronicle echoes the same message about the Press release on behalf of Congresswoman Harman and Congressman Dreier.
A couple of nice quotes here:
“Our bill will restore to IndyMac customers what they suddenly lost in July 2008, and treat them as equals to other Americans whose savings were swallowed by the economic crisis,” said Harman. “Congress can make these people whole again. We have spent a trillion dollars bailing out Wall Street, the auto industry and banks. It´s time for more help for Main Street.”
“Seeking fairness for former IndyMac depositors has been a priority since the bank´s takeover in the summer of 2008,” Dreier said. “Their losses were no less difficult and no less tragic than those that occurred later that same year. It is only fair that the families and small business owners who kept their savings with IndyMac receive the same protection as those who lost funds at other financial institutions but were covered by the higher deposit insurance amount.”
To read the American Chronicle article, Click Here.
Indymac depositors get another shot at retroactive deposit insurance
Ryan Carter
Posted: 05/27/2010 04:23:20 PM PDT
Local lawmakers Thursday introduced an amendment to financial reform that would allow depositors at failed Pasadena-based Indymac Bank to recoup a collective $233 million in lost savings.
The amendment, called the Indy Act, would make a federal deposit insurance cap of $250,000 retroactive to the time IndyMac failed in July of 2008. At the time, deposit insurance was set for deposits up to $100,000. But as the financial crisis grew Congress only a few months later approved the heightened cap.
But the cap did not extend to institutions that failed before October 2008.
“The whole thing is about fairness,” said Rep. David Dreier, R-San Dimas, who along with Rep. Jane Harman, D-Venice, introduced the bill Thursday.
Read more: http://www.pasadenastarnews.com/news/ci_15176568#ixzz0pCo8I9Re
Thrifts post 1Q net income of $1.82B, By MARCY GORDON The Associated Press Monday, May 24, 2010; 7:29 PM
A glimpse of this article:
Many lawmakers and consumer advocates have criticized the OTS for what they say was lax oversight of the thrift industry in the run-up to the financial crisis. The previous OTS director, Scott Polakoff, was put on leave pending an investigation into improper backdating of cash infusions at six thrifts including IndyMac. He later left the government. Sweeping legislation to overhaul financial regulations that passed the Senate last week calls for abolishing the OTS.
To read more of this Washington Post article, Click Here.
Bankers jailed, sued as Iceland seeks culprits for crisis May 12 01:44 PM US/Eastern
More than a year and a half after Iceland’s major banks failed, all but sinking the country’s economy, police have begun rounding up a number of top bankers while other former executives and owners face a two-billion-dollar lawsuit.
Since Iceland’s three largest banks — Kaupthing, Landsbanki and Glitnir — collapsed in late 2008, their former executives and owners have largely been living untroubled lives abroad. Maybe the US will be next? or will we just dole out more TARP funds for Banker’s bonuses?
To read the full story, Click Here!