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.
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 firstname.lastname@example.org if you have not already done so. Be well, Lisa
My name is Elizabeth and I am so glad that I have found people that I can address issues with and potentially discuss alternatives to assist with our situations. Here’s my story:
I had just sold a ton of company options and lost over $168K in the bank foreclosure that has not been reimbursed to date. I sold my company options is hopes of diversifying my portfolio and put the money into my money market account at Indy Mac until I could find some other investments (it was only in my account for two months). I had over $450K in my bank account and then they bank filed bankruptcy. I got a portion back – but the $168K is still in question.
It is beyond me that the FDIC can take your money over night and then never communicate the status of what is going on. I have contacted the FDIC multiple times with no success. I called them repeatedly for two weeks straight – every day leaving a message and no one would call me back. I finally received a call back – but there only response was that they had no information and that I would have to wait. I asked how long and they said that they have no idea.
I can’t believe that the government operates this way. I am very concerned with what the government is doing now with all the bailout money which the public once again will have to fund.
I have already been hit so hard with this financial challenge. I saved my whole life for this and now it has been taken from me in 24 hours. I sacrificed through my life and never spent money beyond my means. But due to others’ over zealous spending patterns, I am feeling the pain. This is teaching me not to save and to spend everything I can and then the government will take the money from others to pay for my mistakes… is that what our society really wants to teach people?
On a side note … I have also been trying to determine from a tax perspective – how this “loss” will be handled. Due to the fact that I sold company options – I am being taxed at my ordinary income tax rate which is 35% for the money and now I don’t even have the money. Per the IRS publications – I will only be able to write off up to $20K against ordinary income (subject to some other limitations) or write the loss off against capital gains – which I have none since the stock market has taken a turn for the worse. \
Any information that you can provide on this Indy Mac situation is GREATLY appreciated since the government gives “NONE”. Please let me know if I can be of any assistance.
Best regards –