Not for us uninsured depositors!!! Please read this latest article appearing in the The Wall Street Journal this morning Click Here to read. Just another fine example on how the Federal Government and the FDIC are looking out for the interests of failed Indymac Bank uninsured depositors.
I was appalled this morning when I went to the FDIC official website http://www.fdic.gov/about/contact/directory/index.html to contact the Division of Resolutions & Receiverships only to find that all the phone numbers for the contacts from their Headquarters have conveniently been deleted from the FDIC websight. Shame on the FDIC. They have obviously confused the concept of trying to be more “transparent” with that of being more “invisable”. Clearly they are trying to avoid our phone calls so they do not have to deal with the depositors from Indymac. Lucky for them I saved the original list with the phone numbers from when Indymac first failed because I suspected that the FDIC might try and do something like that. I will contact Lisa to see if she can post the list I have so we can contact FDIC officials with our concerns, comments and questions. Your comments are greatly appreciated. Thank you.
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.
My name is Jeannie, and I an an IndyMac investor who has not received over 50K of MY investment. I was told all accounts under 100 were insured and had 2 accounts – cd’s in my name of 100k plus a year’s interest/dividends.
Please put me on the list of uninsured folks that you are compiling. I have written my Senator’s Jeff Sessions and Richard Shelby – both expressed their sympathies and basically said that the increased FDIC insurance was not retroactive…. and that was about it. I am livid.
Thank you for spearheading a united effort. I look forward to hearing from you.
October 09, 2008
Mr. Ronald Bieker
Deputy Director, Division of Resolutions and Receiverships
1601 Bryan Street
Dallas, TX 75201
Dear Mr. Bieker,
I am not certain if you are the correct person I should be contacting, if you are not please forward this email to the correct person or department. My wife and I have lost over eighty thousand dollars in the take over of IndyMac bank. We have received 100% of the amount that was federally insured and the 50% dividend that was promised of the uninsured amount. However, we are still out over $80,000.00 at this time. At the time of the take over of IndyMac it was reported that the FDIC intention was to sell the assets of IndyMac to recover any losses of it’s depositors and the FDIC hoped to accomplish this within three months. We are now in the third month and my wife and I are still waiting. We understand these things take time, however the situation my family is in is becoming dire each and every day we wait. Initially my wife and I deposited the money from the sell of our house in IndyMac and this was to be temporary while we searched for another house. Months have passed now and we are having to live with relatives while we wait for something that was taken from us and may never be returned. Mr Bieker if we could go back in time, believe me, my wife and I would have never sold our home and made that deposit into a California bank that a New York Senator caused a run on and left me without a home to provide my wife and my 4 year old daughter. I would like to offer a solution that not only will help my family, but will help the FDIC as well. I have noticed that there are several thousand homes for sell on the IndyMac website and my wife and I would like to purchase one and to have the amount that is due to us discounted from the purchase price. We would be able to pay the difference in cash and this transaction would not require in financing on our part. Please let me know your thoughts on this idea and feel free to contact me with any questions or concerns you may have. I can be reached by mobile phone at 512.538.4243
Bill Jordan and Elvira Rodriguez
Hi- I read your blog with great interest today as we went through this too for my Mom’s accounts at Indymac that we were told were insured. So far she is still out more than $100,000.
She had three CD’s with Indymac and they convinced her a fourth would still be covered by FDIC insurance. The new CD started the day before the bank was taken over. We tried to get through to close out that CD on the day that it became clear the bank was in trouble, but no one answered the phones and the fax we sent was ignored.
We have tried all methods with the FDIC including the office of the Ombudsman, they only say to wait until the assets are sold and she should get “some” or most of that money back.
What can I do to help this group action?
Here we go !!! The moment of truth is upon us. We have waiting patiently for months while the FDIC has experimented with Indymac as laboratory rat with their loan modification program. Now that the FDIC has ran the bank into the ground we can see what it will go for. Check out this article at the following:
Does anyone really believe that the FDIC has looked out for the best interest of the depositors? Isn’t it ironic that the long-awaited sale of Indymac Bank may be announced as early as Wednesday, Christmas Eve Day?
All I want for Christmas is my hard earned money back so I can stimulate the economy and spend lots of money on gifts for my family and friends which they so much deserve.
Please read my story at:
IndyMac Bank Customer Frustrated by $52K Loss !!!
Links to FDIC press releases that effect our deposit insurance:
Emergency Economic Stabilization Act of 2008 Temporarily Increases Basic FDIC Insurance Coverage from $100,000 to $250,000 Per Depositor http://www.fdic.gov/news/news/press/2008/pr08093.html
FDIC Simplifies Coverage Rules for Revocable Trust Accounts http://www.fdic.gov/news/news/press/2008/pr08086.html
These rules need to be made retroactive to when this crisis began and lawmakers agree that Indymac was the first major bank to fail due to our current economic crisis. TARP (Troubled Asset Relief Program) funds could also be used to purchase “toxic” mortgages from failed Indymac Bank which would provide the FDIC enough money to return to the depositors.
Recent letter sent to Sheila Bair. We all need to contribute to this blog and share our stories.
December 15, 2008
Ms. Sheila C. Bair
Chairman of the FDIC
Federal Deposit Insurance Corporation
550 17th St. NW MB-6028
Washington, DC 20429
Dear Ms. Sheila Bair:
I am one of the many depositors that were fraudulently induced to exceed FDIC deposit insurance limits at failed Indymac Bank. I had two CD’s with the bank and I was assured that my accounts were properly insured by representatives at Indymac. Per the advice of Indymac Bank one account was held as an individual insured by the FDIC for 100k and the other account was held as a trust account with two beneficiaries (ITF’s) and insured by the FDIC for 200k. I have been informed by the FDIC that one of my beneficiaries on my account is not “qualified” and I have uninsured losses that exceeds $105,000.00.
On Friday August 8, 2008 I spoke with a Mr. Michael D. Geske at the FDIC he went over my accounts and made a deposit insurance determination that I had a grand total of deposit insurance of $300,000.00 and the total of uninsured funds of $5,798.17. Mr. Geske also stated that I would receive a corrected receivership certificate in the mail and the balance of my insured funds. Copy of the email sent by Mr. Geske at the FDIC confirming the conversation is attached. As of this date I have received neither a corrected receivership certificate nor the balance of my insured funds.
I have contacted numerous agencies including the Office of the Ombudsman at the FDIC and my local Congressman’s Office and have not had a satisfactory resolution to this matter. I am currently working with Senator Bill Nelson and Senator Mel Martinez in my state to help resolve this matter. I am writing to request formal assistance from Ms. Sheila C. Bair, Chairman of the Federal Deposit Insurance Corporation.
I am requesting that the FDIC insure my account balances for the $300,000.00 that I was assured by Indymac Bank as well as by Mr. Michael D. Geske at the FDIC. Effective September 26, 2008 the FDIC modified the rules for revocable trust accounts regarding the concept of “qualifying” beneficiaries and will insure virtually any beneficiary listed on an account. Effective October 3, 2008 with the passage of the Emergency Economic Stabilization Act, insurance limits were increased to $250,000.00 in an attempt to instill public confidence in the banking system.
The Federal government and lawmakers have acknowledged the fact that Indymac Bank was one of the first banks to fail due to our current economic crisis. I firmly believe based on the size and scope of such a large publicized bank failure such as Indymac Bank that lawmakers should have made these changes retroactive to when this crisis initially began. I hope that lawmakers can go back and correct this situation and do what is right for the American people who have lost so much at Indymac Bank.
I would greatly appreciate your assistance in regards to this matter. If you need any additional information or I can be of any further assistance please do not hesitate to contact me at the address above or call me at (Deleted) or (Deleted)
This writer wants to thank all of those who have emailed their Indymac stories so far. Each case is so similar. Professionals, hard working citizens of society, embarrassed to have “let this happen to me”.
Soon, we will be posting some of this information with permission from those who submitted their documents. Some letters will leave the writer’s name out, some will include name and phone number.
If you have not written letters to media, made phone calls, documented all of your details, contacted members of U.S. Congress, now is the time to start. We shall compile a list of interested media entities for each of you to contact, as well as post ideas for your letters, and places to write in case you are out of ideas.
Many we have spoken with are in favor of sending a group letter to members of congress, media, and visiting en mass to Senators’ offices etc. Soon a proposed letter will be posted on this blog site. Any person interested in becoming a part of sending this letter is welcome. Please contact email@example.com if you have not already done so. Be well, Lisa