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IndyMac seized, investigated
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Thousands of depositors lined up last week at IndyMac Bank branches, eager to withdraw their funds or make sure their money was secure after learning that IndyMac Bank was seized by the Federal Deposit Insurance Corp.
IndyMac's operations were transferred to the FDIC because bank regulators did not think that it could meet its depositors' demands. The FDIC is now running the bank under the name IndyMac Federal Bank, FSB.
The mortgage lender, the largest regulated thrift to fail in the past 20 years, succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.
The FBI is investigating the bank for possible fraud, an official said Wednesday..
As of March 31, IndyMac had total deposits of $19.06 billion. The company operates 33 branches, all in Southern California, including three in Ventura County.
Some 10,000 depositors had funds in excess of the insured limit, for a total of $1 billion in potentially uninsured funds, according to the FDIC.
David Barr, an FDIC spokesman, said people might have more money insured than they think.
Customers will be informed about how their accounts are structured and may be eligible to recoup dollar-for-dollar beyond the $100,000 limit, he said. If deposits aren't fully insured, customers will be given a receivership certificate and be told about the process to possibly recoup more of their money.
Barr said it may take several years before the FDIC completely resolves the collapse and addresses customer claims.
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