IndyMac customers keep more of their cash

FDIC cuts estimates of uninsured deposits to $600 million from original $1 billion, and says more than half of the money has been returned to customers.

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)
By David Ellis, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Consumers who banked with failed mortgage lender IndyMac will lose a whole lot less money than originally feared.

Based on updated figures from the FDIC, just $600 million in deposits were uninsured, an FDIC spokesman said Wednesday, confirming the news that was first reported by the Los Angeles Times.

That's down from the $1 billion estimate the Federal Deposit Insurance Corporation initially gave when federal regulators first took control of IndyMac on July 11.

So far, the FDIC has managed to return more than half of the $600 million to IndyMac customers with uninsured deposits. Those depositors, which ranged from individuals to non-profits to businesses, could get additional money back when the FDIC sells the bank, said spokesman David Barr.

FDIC Chairwoman Sheila Bair has said publicly that the agency hopes to sell IndyMac as a complete entity within 90 days from the time that regulators seized the bank.

The amount of uninsured deposits will typically decline following the failure of a bank as regulators determine how accounts are structured and the relationships between different account holders.

The FDIC fully insures traditional bank accounts up to $100,000 per deposit and $250,000 for most retirement accounts. However, individuals with multiple accounts in the same name at the same bank are limited to the $100,000 cap.

IndyMac, with assets of $32 billion and deposits of $19 billion, was the eighth bank to fail this year.

The failure of the Pasadena, Calif.-based IndyMac marked the largest collapse of an FDIC-insured institution since the 1984 failure of Continental Illinois, which had $40 billion in assets, according to FDIC records. 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:
More Galleries
Novelty gifts for people with money to burn For those who've got the cash, these holiday gifts can really make a statement. More
The best stocks of 2014 This year has been very solid for stocks, but these 6 were the best of the S&P 500. More
14 biggest tech fails of 2014 2014 was chock-full of big failures in technology, from security snafus to executive gaffes. Here are the top ... er ... bottom 14. More


Most stock quote data provided by BATS. Market indices 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.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.