FDIC’s Bair offers no comfort to uninsured IndyMac depositors

While it is true that it did require an act of congress to increase the FDIC insurance limit to 250K per depositor however it was the FDIC's Board of Directors that simplified coverage rules for revocable trust accounts so that coverage is based on the naming of virtually any beneficiary. The FDIC choose NOT to make this rule retroactive which potentially could have helped thousands of depositors. Per Colleen Boles at the FDIC "Federal law prohibits federal agencies from making a new rule retroactive except in the rare instance of compelling, overriding public policy considerations. The FDIC did not pursue making the new rules retroactive, mainly because doing so would have caused significant disruption to its administration of the federal deposit insurance program." It appears that the FDIC is more concerned about protecting the FDIC than the depositors. Also, per Gordon Talbot at the FDIC, one of the first responders on sight after the failure Indymac Bank the FDIC was immediately aware of the problems regarding "qualifying" beneficiaries and revocable trust accounts after reviewing bank records. Yet still the FDIC did NOTHING to help those depositors that were fraudulently mislead by Indymac Officials that there money was safe and insured.