Run on IndyMac turns tense in Encino
From LATimes.com this morning: "Los Angeles police were dispatched to an IndyMac branch in Encino this morning when customers waiting to withdraw money became agitated after several people tried to cut in line on the second day of the failed institution's federal takeover. Police told customers to remain calm or face arrest as they tried to withdraw their money."
The story says people lined up at the Encino branch of IndyMac Federal at 1:30 a.m. today.
Bloviation: These are unusual times -- police called to maintain order at a failed bank in a relatively wealthy section of Los Angeles? Think of the events of the last 10 days or so -- the death of IndyMac as a mortgage lender, its failure as a bank, the run on the bank yesterday and today, the crisis of confidence in Fannie and Freddie, the Fed's new rules banning certain mortgage products. These are not consistent with bringing confidence, and buyers, into the housing market. These are consistent with caution and financial fear.
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Photo credit: L.A. Times