Contact Senator Chuck Grassley
Click Here to contact Senator Chuck Grassley
Mother of U.S. Soldier, Lost Son, Then Lost Deposit from Insurance
Click here to read about Elaine Lopez of Whittier, who lost a deposit at Indymac.
The deposit was her son’s life insurance policy payout.
Good Health and Best of Times in 2009
This is Lisa’s last posting until the new year and news of the “sale” outcome for Indymac Bank.
May the Year of the Ox be fantastic for all of us and our families!
Cheers,
Lisa
Dec. 29 American Banker Article
http://www.onwallstreet.com/asset/article/2649211/fewer-bank-failures-than-expected-2008.html?pg=
Observers said that experience influenced the way the FDIC handled the subsequent 20 failures.
“It’s fair to say that the FDIC did not want another IndyMac,” Mr. Dennis said. “They do not want CNN panning crowds lined up to try and get their deposits before the bank opens in the morning.”
Since then the vast majority of the FDIC’s receiverships have covered uninsured depositors, preventing the kind of fallout that results from customers losing money. Of the 20 banks that failed after IndyMac, 16 of the transactions fully covered uninsured customers.
Some observers raised questions that the FDIC had violated its statutory mandate to find the least costly resolution, arguing that while protecting all depositors may be in the public interest, it is not the law.
“The statute doesn’t say anything about public confidence,” said Bert Ely, an independent consultant based in Virginia and a critic of the agency. “I don’t have a problem with protecting all depositors, but there ought to be an open debate about it.”
But FDIC officials said protecting depositors was not their idea, but the result of the bidding process. Some observers said banks are more likely after IndyMac to seek to protect deposits for fear of starting a panic.
“If the bidders are willing to pay enough traditional money to pay the uninsured, then they’re protected,” said Art Murton, the director of the FDIC’s division of insurance and research. “That’s not something really we control. It’s really a function of the value of the franchise, and how the bidders view it.”
It is clear, however, that the FDIC has responded to failures more creatively since IndyMac.
Armel Leslie (John Paulson’s PR person and his email)
I sent this message to Armel Leslie this morning. He is the pr person for John Paulson, the hedgefund investor who is buying troubled assets.
From: francq@aol.comTo: aleslie@walek.comSent: Wed, 31 Dec 2008 6:22 amSubject: john paulson on bloomberg this morning
I noticed you are the PR representative for John Paulson and that he is apparently attempting to buy IndyMac and increase his profits from buying troubled assets. However, we are a group of IndyMac depositors who are awaiting the restoration of 50% of our removed funds and closely folllowing Congressional lack of regulation, supervision and oversight by agencies such as the FDIC and OTS.We are also tracking this sale and feel that your appearances in Congress could factor us in – rather than out. We are also following the Treasury’s investigation of Darrell Duchow.I am interested in being in touch with you as quickly as possible so that this occurs speedily. It is pitiful that this Congress and its agencies are apparently going to take the plight of depositors set them up for the success of a hedge fund investor.
Fran Quittel
francq@aol.com
http://www.indymacdepositors.com/
http://www.fdicbusinessalert.com/
626-864-1400/cell
unlimited hedge fund withdrawals (John Paulson)
John Paulson [no relation to Henry], the very same hedgefund investor who is trying to buy IndyMac said on Bloomberg this morning that hedge fund investors who want to withdraw their funds should be allowed unlimited access to their capital. This is in light of the Madoff scandal and potential changes to regulations to allow them to do so.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aaiL4CVMbE7s&refer=home
Dec. 31 (Bloomberg) — John Paulson, who runs the $36 billion hedge-fund firm Paulson & Co., has some harsh words for his peers and their tendency this year to block or curb clients’ attempts to get their money back.
“We think it’s a mistake for managers to use gates and other tools to limit investor access to their funds,” Paulson wrote in a 2009 outlook to investors. “While we recognize the difficulties of the current environment, we think it is a manager’s responsibility to raise liquidity to meet the redemption needs of their investors.. . .
All of Paulson’s funds profited last year buying credit default swaps on mortgage assets, which are instruments that rise in value as the risk of default increases. Paulson told investors in November that he had increased his holdings of derivatives that gain in value when the chances of corporate credit defaults rise.
Paulson’s Advantage Plus fund has climbed 29 percent this year through October while many managers are enduring the worst year of their careers. ”
FDIC communications discrepancies
On July 13, immediately after the FDIC takeover, Andrew Gray published a news release citing Sheila Bair’s “help to depositors” to re-structure accounts that were over if there were problems with named beneficiaries. After depositors apparently “self-identified”, helping the FDIC remove 50% of funds that were over, that release was first changed and the url directed to another release on the FDIC site – without that sentence. Later, the cache file for the release was totally obliterated – as if it never existed.
This is the language of the original, changed and then obliterated release. Given the fact that Congress has been so quick to issue a $700 billion bailout, I continue to wonder why the FDIC’s communications policies which benefit itself, banks and their lobbyists far more than depositors – have escaped Congressional scrutiny.
“All bank depositors should also understand that they can have insurance coverage in excess of the basic limits of $100,000 per institution, with an additional $250,000 per institution for IRAs. For instance, subject to certain conditions, single and joint accounts are separately insured, and revocable trusts generally provide $100,000 of coverage per beneficiary. If you have any questions about whether your deposits are insured, we encourage you to consult with your bank or contact our deposit insurance specialists at 1-877-ASK-FDIC. If you find that you are not fully insured, it may be possible to restructure your accounts to bring your deposits below the insured limits. But first get the facts before making any changes in your accounts or banking relationships.”
Fannie Mae Holding IndyMac Deal ‘Hostage’
Here is the latest news on the potential Indymac sale. http://www.housingwire.com/2008/12/30/fannie-mae-holding-indymac-deal-hostage-sources-say/ No mention whatsoever regarding what will become of the depositors that are still waiting for their money from the FDIC. Apparently everyone has their hands in the pie. While the FDIC continues to work a backroom deal with a private equity consortium known as HoldCo, who is looking out for the best interest of the depositors? I thought the FDIC could run Indymac for years if necessary. Clearly Indymac Federal Bank is entitled to TARP funds. Just use some of the TARP money to purchase the “toxic” mortgages and GIVE US DEPOSITORS OUR MONEY BACK !!!
Potential Sale of Indymac – Holdco – late January
Hot off the presses for those of you who have not seen this… It is looking like the sale of the bank is proceeding…
http://online.wsj.com/article/SB123057137056939847.html?mod=googlenews_wsj
Connecting the Dots…we ARE the Dots…
Greetings all,
Thanks to each of you for calling, emailing, blogging. In order to get more focus, and take action, I would like to get some info posted on the blog, and, find a place to store files that can be viewed on the Internet; letters and my excel address book of letters I have U.S. post mailed (yes, I went postal) to government workers of all sorts. If you are able to help, please contact indymacdepositors@gmail.com.
A special thanks to Lauren LaCapra at “TheStreet.com” for writing and exposing some information about Indymac & the FDIC.
I have now spoken with about $3,500,000 to $4,000,000 worth of depositors. Conservatively, .7% of all the $541 million missing Indymac dough. Not bad considering I have been on the case for a very short time. You are all very intelligent, very conservative, or you never would have had the savings put away in any event. It is your retirement, college fund for children, money for family, money YOU EARNED. If you feel any bit embarrassed, we all have been there. Help yourself get over it and help us by taking action on the items below. You can remain private if you wish, and still participate in your self assisted attempt in recovery of funds.
A few housekeeping items for us:
1) If you want to be a blogger, please shoot me a quick note back, and I will send you an “invitation to Blog”. Send your note to indymacdepositors@gmail.com. the blog site is http://indy-mac.blogspot.com/ or you can type indymacdepositors.com into your browser. This will take you to the same place.
2) If you want my excel spreadsheet of addresses and names of senators, congress people and other entities, please send me a note, I will send to you the excel file as an attachment. If you can do mail merge, it is set for that already. There are about 45 entities or people, so a mail merge helps.
3) If you want to be connected to all of the others in the group & want to connect, I suggest you include your info in the blog, or a comment.
I have stories to post, and out of respect for the privacy of everyone, I want you to post your own, so I don’t have to edit out the info you want excluded. We have privacy issues to fully respect, but for those who want to be heard, please get out there.
As a reminder, please write to your congress people! Write to the President Elect Obama, write to President Bush. Write to the media, radio stations, any financial show, cable show, news letter that you think will be fruitful. Please post any replies or results to the group on the blog!
Most of all, stay healthy & love your loved ones. There’s no time like the present!
Cheers,
–
Lisa Marshall