IndyMac: Your money is safe - FDIC

It's a massive bank failure, but the vast majority of customers see little disruption or risk.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

NEW YORK (CNNMoney.com) -- The FDIC stressed Sunday that the takeover of failed bank IndyMac is largely a "non-event" for most customers.

"Come Monday morning, it will be business as usual for all insured customers," said John Bovenzi, chief operating officer of the Federal Deposit Insurance Corporation, which insures U.S. banks.

When a bank shuts down, traditional accounts are insured to at least $100,000. Some accounts, such as annuities and mutual funds, are not insured at all. Individual Retirement Account (IRAs) funds are insured to $250,000.

If you had $100,000 at one bank and $100,000 at another, both would be insured, according to Allan Roth, a Colorado Springs, Colo. financial planner.

Individuals with multiple accounts in the same name at the same bank are limited to the $100,000 cap. If an individual has a $100,000 savings account in her name and a $100,000 joint account with her husband, both accounts would be covered.

"The difference is not in the number of accounts [that each individual has at an FDIC-insured bank]," said Roth. "The difference is in the titling [or name] on the account."

IndyMac Bancorp, once one of the nation's largest home lenders, was taken over by federal regulators on Friday and transferred to the FDIC.

While IndyMac customers did not have access to online and phone banking services over the weekend, they could access funds by ATM, debit cards and checks.

"That fact is that for insured depositors, IndyMac's conversion has been largely a non-event," said Sheila Bair, chairman of the FDIC in a statement.

IndyMac customers with uninsured deposits will get at least half that money back, and they could get more back, depending on what the FDIC gets when it sells the bank, said Bair.

Loan customers were advised to continue making loan payments as usual.

The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said. The FDIC does not publish a list of trouble banks out of concern it could spur a bank run

But for non-IndyMac customers, Bair stressed that their money is safe.

"IndyMac is only one of 8,494 depository institutions operating throughout the country," she said. "The overwhelming majority of banks in this country are safe and sound. The chance that your own bank will be taken over by the FDIC is extremely remote. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits."

Bovenzi added that all IndyMac branches will reopen Monday with full operations. "Customers should view this as a change in ownership," he said.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
7 epic gadget flops From the Microsoft Zune to the BlackBerry PlayBook, the Fire Phone is following in some unfortunate footsteps. More
What I gave up to save $1 million They may have million dollar-plus nest eggs, but they had to make some big sacrifices along the way to get there. Here's what these four savers did without in order to save seven-figures retirement. More
World's Top Employers for New Grads For an exclusive CNNMoney list, research firm Universum Global surveyed college students around the world to see where they most want to work. More


Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.