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.”

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December 10, 2009                                                                                                                      (202) 226-7282

HARMAN VOTES AGAINST RULE TO BRING REGULATORY REFORM BILL TO HOUSE FLOOR, PROTESTING ABANDONMENT OF INDYMAC INVESTORS

~ Lawmaker says Congress “turned its back on Main Street” ~

Washington, DC – Congresswoman Jane Harman (D-Venice) today voted “no” in a procedural rule vote to bring the Wall Street Reform and Consumer Protection Act (H.R. 4173) under consideration by the House.  Her vote was a protest against the exclusion by the Rules Committee of her amendment to make whole 8,700 former IndyMac Bank customers who lost millions in deposits when the bank collapsed in July of last year.  Harman’s proposal—presented as an amendment to H.R. 4173—would have used Consumer Financial Protection Agency funds to extend the FDIC safety net to investors who lost deposits in excess of $100,000 but below the new FDIC limit of $250,000.

IndyMac was the largest savings and loan association in the Los Angeles area and the seventh largest mortgage originator in the U.S.  The bank’s failure on July 11, 2008 was the fourth largest in U.S. history and the second largest of a regulated savings and loan association.

“Congress has spent hundreds of billions of dollars to bail out Detroit and Wall Street, but today turned its back on Main Street,” said Harman. “My amendment to make IndyMac depositors whole would have cost pennies in comparison, and would have helped thousands of Americans, including hundreds in the South Bay, make mortgage payments, send their kids to school or enjoy a secure retirement.”

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Eben Kaplan

Communications Director

Congresswoman Jane Harman

Washington, DC 20515

202-226-7282 (Direct)

202-713-6510 (Mobile)

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