Anxious customers line up at IndyMac to withdraw money

by Stephanie Sobotka | July 14, 2008 at 09:43 am | 388 views | 3 comments

slideshow view all 2

Worried customers lined up outside IndyMac to withdraw their money this morning. IndyMac was seized by federal investigators on Friday. The Federal Deposit Insurance Corp automatically insures customers with accounts worth $100,000 or less.

Previous coverage by NowPublic contributor rahul can be seen by clicking here

Dozens of nervous investors are lining up outside the Pasadena headquarters of IndyMac Bancorp., anxious to withdraw their savings or check the status of their accounts at the failed institution.

Harvey Solvan says he has more than $100,000 in the bank seized Friday by federal regulators and intends to withdraw as much as he can as soon as he can.

Solvan says he spent the night at a nearby hotel in order to be at the door of the bank more than three hours before it opened at 9 a.m. Monday

John Bovenzi, chief operating officer of the Federal Deposit Insurance Corp., has reassured consumers that bank failures have been rare in the past, and that if more banks do fail, the government has enough in reserve.

He reminds consumers that all accounts worth $100,000 and less are automatically insured by the FDIC, which has $53 billion in insurance funds.

Flag this story

Upload

Make your good story a great story. Click here to add your photos & video to this story.

Crowd Power

Scan the web to add photos and videos to this story or add them from the NowPublic Archive.

Rachel Nixon

at 09:52 on July 14th, 2008

news wanted:

I think this is an important story and would benefit from other NowPublic contributors working on it. I've flagged it as News Wanted and invite others in relevant locations to look for more evidence. We'd be interested to hear from IndyMac customers, especially.

Barbara McPherson

at 19:30 on July 14th, 2008

good stuff:

Steph02, I like this story. It's good stuff. It's an anxious time for many of us. I wonder if and when we'll hear the truth about this mess.

Bob Macdonald (not verified)

at 23:38 on July 14th, 2008

I understand the FDIC believes over 6,000 US financial institutions will go bust over the next few months: it is going to be a catastrophic banking collapse. Indy, Freddie and Fannie are just the beginning. The FDIC went on a hiring binge of thousands of new officers because they knew it was going to go crazy over the summer.