Cops to IndyMac customers: Remain calm or face arrest

[BankruptPinoy]

Police ordered angry customers lined up outside an IndyMac Bank branch to remain calm or face arrest Tuesday as they tried to pull their money on the second day of the failed institution's federal takeover.

At least three police squad cars showed up early Tuesday as tensions rose outside the San Fernando Valley branch of Pasadena-based IndyMac.

Federal regulators seized Pasadena-based IndyMac on Friday and reopened the bank Monday under the control of the Federal Deposit Insurance Corporation. Deposits to $100,000 are fully insured by the FDIC.

Worried customers with deposits in excess of insured limits flooded IndyMac Bank branches on Monday, demanding to withdraw as much money as they could or get answers about the fate of their funds.

When it was clear some wouldn't get in before closing, FDIC employees apparently took down names and told them to return Tuesday.

Other customers began lining up at 1:30 a.m. Tuesday, and by dawn, tensions escalated because people on the list were getting priority.

By 8 a.m., about 50 people on the list waited in one line and many more waited in another.

Five people were allowed in at a time.

Customers became infuriated, and police told them they could be arrested if they didn't remain calm.

Police stood by at some other branches around Southern California but there were no other reports of problems.

http://www.dailynews.com/breakingnews/ci_9887404

[JRScott]

In many cases this could represent the life savings of these people, it is understandable that they are anxious. Still some order has to be maintained.

I just hope it doesn't spread to other banks though I fear it will.

[Priceless ProSe]

In many cases this could represent the life savings of these people, it is understandable that they are anxious. Still some order has to be maintained.

I just hope it doesn't spread to other banks though I fear it will.

Lets see how many people are still dumb enough to keep more than 100k in a single bank account. The "FDIC insured 100k per account" placards are posted in the lobbies of all of these banks. Diversify people

[JRScott]

Hmm actually its 100k per institution. Multiple accounts count towards the same limit when at the same institution.

So if you had a Checking account of 75k and a Savings account of 50k at Indymac you are only insured for the 100k, not the 125k.

[epiphany]

Hmm actually its 100k per institution. Multiple accounts count towards the same limit when at the same institution.

So if you had a Checking account of 75k and a Savings account of 50k at Indymac you are only insured for the 100k, not the 125k.

This bank is in my home town and the local coverage is insane. The FBI is now investigating INDYMac for supplying fradulent loans. Apparently, the loan officer would deny the loan, it would escalate up the ladder, and come back into the loan officer's hands approved.

The loans eventually would default, surprise surprise, and then the higher ups who had pushed the loans through by embellishing the borrowers' capability to pay the loans back, would point the finger back at the peon loan officers who had denied the loans in the first place.

There was a guy on the radio yesterday who spent hours standing in line at INDYMac and read the FDIC posting at the bank. HE SAID that it states in the fine print that they have 99 years to pay you back. The guy sounded credible but I dunno for a fact if that's true.

As an aside, I was at my bank yesterday and was standing in line while two people waited on this woman and then disappeared into the vault. They came back with the biggest bundle of cash I have ever seen. She walked out with it non-chalantly, didn't put it in a bag or anything. I wondered if she was pulling all her money out due to the pandamonium that's going on around here.

scary,

ep

[Bandit]

As an aside, I was at my bank yesterday and was standing in line while two people waited on this woman and then disappeared into the vault. They came back with the biggest bundle of cash I have ever seen. She walked out with it non-chalantly, didn't put it in a bag or anything. I wondered if she was pulling all her money out due to the pandamonium that's going on around here.

scary,

ep
ep

or she gave them a note that says this is a stick up, fill my arms with cash & then showed them the gun.

[JRScott]

It's likely she is withdrawing due to the current crisis. You know the bank run in 1929 started about the same way.....

[epiphany]

or she gave them a note that says this is a stick up, fill my arms with cash & then showed them the gun.

oh, I am naive. And she had such a sweet smile too. (she really did).

I didn't think to look for the get-away-car.

ep

[epiphany]

It's likely she is withdrawing due to the current crisis. You know the bank run in 1929 started about the same way.....

I honestly think that's what she was doing.

ep

[bmrigs]

This situation is going to spread to all the banks. Their scam is up. All the banks operate in insolvency. Fractional Reserve Banking at it's worst. The banks know that 98% of the time all their customers wont come at once to withdrawl their monies. But once confidence is shattered, everybody shows up to withdrawl. Then the banks close their doors. FDIC is a joke. Its only a sticker on a window to make people think that their money is safe. I believe we are heading towards another Depression. The Federal Reserve system wasnt such a good thing for this country.

[BankruptPinoy]

Federal regulators seize IndyMac Bank

http://www.youtube.com/watch?v=39ZDmzjTUbs

[AngelinaCatHub]

This started with the gasoline prices. Cascade failure. If our illustrious leaders would announce that we are going to start drilling, and five new refineries will be approved and pipe lines WILL be approved, the immediate concern of our oil countries will bring down the price. The fact that drilling and riggs, and pipes all need EMPLOYEES, will give us enough immediate jobs to quash this coming run and 2nd Great Depression. ‘Hub

[AngelinaCatHub]

Money has no intrinsic value. By itself it is worthless. Only the whole faith and credit of the United States, backing it, gives it value. Money represents transfer of time You work, get tokens, pay tokens to the plumber who gives back his time you sold for the tokens. It is a form of barter for time, and labor. When the faith of our Country becomes shaken, and it will when the printing presses start up to cover all the FDIC, money will become valueless. Government loves inflation. It is a way of getting goods and services now and paying less for them in the future with money worth less.

Weimer Republic 1923

[BankruptPinoy]

This started with the gasoline prices. Cascade failure. If our illustrious leaders would announce that we are going to start drilling, and five new refineries will be approved and pipe lines WILL be approved, the immediate concern of our oil countries will bring down the price. The fact that drilling and riggs, and pipes all need EMPLOYEES, will give us enough immediate jobs to quash this coming run and 2nd Great Depression. ‘Hub

Mr. Hub, if that would only happen, wouldn't just the pyschological effect on Americans be great?

I just found this:

George W Bush just announced on July 14, 2008 that he is lifting the Executive Order ban on offshore drilling and urged Congress to join with him.

America - Death By Terminal
Madness And Stupidity

http://www.rense.com/general82/ammad.htm

[Frogge]

Yes, here at my office in KS, we were watching the Indymac coverage. I work in an office with a RE Invstment firm that has several accounts at various banks that have over $100K -- they were going over the lists while we were at lunch the other day and deciding how to move the money around. Everyone is scared.

I picture the Indymac scene looking like the Savings & Loan in "It's A Wonderful Life".

I'm personally thankful that I'm broke.