FDIC slashes estimate of IndyMac's uninsured deposits

From Times staff writer E. Scott Reckard:

It’s looking like substantially fewer big depositors will end up losing money in failed IndyMac Bank.

John Bovenzi, who was named to head the Pasadena bank when the Federal Deposit Insurance Corp. took control of it July 11, said in a memo to the staff today that "it now appears that there were about $600 million in uninsured deposits" when the government seized the lender.

That’s 40% less than the FDIC’s original $1-billion estimate.

An FDIC spokesman said the reduced figure stemmed from the agency’s work since July 11 to identify jointly held accounts, trust accounts and other ways that customers had structured their deposits to stay within FDIC insurance limits.

IndyMac had about $19 billion in total deposits when it was declared insolvent.

The FDIC has paid uninsured depositors 50% of their money upfront. Whether they get back more will depend on what the agency can get for the bank’s assets as it sells them.

The FDIC originally estimated that IndyMac’s failure would cost the insurance fund $4 billion to $8 billion. Bovenzi didn't provide an updated estimate.

Two other highlights from his memo:

-- IndyMac is offering holders of home equity credit lines a rebate of 2% of their line of credit’s maximum, up to $1,500, if they pay off their unpaid balance and close down their line of credit. IndyMac has 27,000 such customers, Bovenzi said.

-- The bank has followed through on promises from FDIC Chairwoman Sheila Bair to stop foreclosure proceedings for owner-occupied homes pending a review of whether the loans can be modified to mutually benefit the borrower and the FDIC. More than 60,000 borrowers with loans serviced by IndyMac are 60 or more days behind on payments, according to Bovenzi, who said he would provide more details on the modification program soon.

Photo: IndyMac CEO John Bovenzi. Andrew Gombert / European Pressphoto Agency

Comments

[foreclosurespecialist]

well. the fed is paranoid. they overreacted. poor indymac

[asim tiwana]

what happens to indymac preferred shareholder of 6% convertible stock, any one ?

[business depositor]

Even in an election year, I must ask myself why the FDIC is doing such a better job of protecting itself rather than the consumers and depositors which are its chartered mission. Even to this very date,there are IMB depositors who have been hurt who would like contact with a human being rather than a no-answer 1-800 number. We have questions:
Where exactly did the funds go which were removed from our accounts and what are the tax consequeences? I just received a statement. I know I have a capital loss, but there is no tax information and then my statement says I have a dividend. The FDIC appears masterful in cooking the books and has provided absolutely no tax guidance on its site and I must wonder why. There is an FDIC Ombudsman's office run by Cottrell Webster at (703) 562-6040 (cwebster@fdic.gov) and there are ombuds people regionally. I think the FDIC's idea of follow up and depositor service and protection fall way short of the mark.

[Jeff Soltan]

I want to know how much each uninsured remainder will be paid by FDIC.
Why is the insurance stil after 20 plus years 100k. i had been told by employee: Rosa Villavicencio on July 10th , the day before the takeover that my accounts were insured to 400k. She was and probably still is employed by the bank. She was responding to my request for a check to close my accounts. I based my decision on her (insured by FDIC) word. I am out
27k after the 50% dividend advance. By the way, do those 50% advances get reimbursed to FDIC fund before depositors see $$'s. I hope not.

[DeeAnn Welch]

I am out $194k due to a teller error. He said he was sorry. This was done at the Santa Monica office. Are there other people out there who are victims of teller error? And what can be done? Do you hire an attorney and risk delay of receivership funds? Are we really going to get 85 to 90 percent of our money back from liquidation?

[DeeAnn Welch]

Received a check. Now I am out $98k after 50% dividend. Are there any other people who were told account was FDIC insured at time of setup only to find out teller made an error and was negligent?

[jeff soltan]

today, it was passed. 250k insurance from FDIC.
I sure hope for their sake it is retro-active to the Indymac takeover. WE DEPOSITORS WANT OUR FUNDS.

[jeff soltan]

Hello DeeAnn Welch, please contact Jeff Soltan at 805-488-4125.
I filed an appeal. Also want others to form unified group to proceed in necessary fashion to recover what belongs to us and our families.
Thank You

[hamir]

even i am considered as an uninsured depoitor and have lost more than $100K
how did you file an appeal. ineed some information on doing the same. has anyone sent letters to senators or US Reps. I have also have my funds termed as uninsured. i have proof that the paperwork was sent to make it insured but bank claims - never received and FDIC supports. it is so sad that whether it is insured or uninsured it is our hard worked money and government - instead of giving the depositors the money are supporting folks who have bought properties and now cannot make payments. who is holding the banks accountable.
if there is more information for filing an appeal i would be very interested

[fran quittel]

As of October 30, 2008:
So far, the FDIC has been spectacularly UNinformative.

If you are someone who wants to be in touch with others, please use www.fdicbusinessalert.com to stay in touch.

[Jim Lombard]

I have an idea for those of you in NY State who need help in sorting out questions regarding uninsured deposits. Call the eminant Sen. Schumer and I am sure he will bend over backwards to help, the same way he bent over backwards to help create this problem.

[M Klapper]

I lost a substantial amount of money with Indy Mac Bank and I want to join any group that is working on recovering their money. Did anyone start a petition?

Appreciate any info,

M K

[gina Martelli]

WE ARE BEING ROBBED !!!

I am also stuck for over $ 64,000.in "uninsured" Indymac bank deposits.
I have been e-mailing reporters, senators, federal officials for nights on end to no avail.
I am collecting a group of fellow "uninsured " depositors through comments posted on the internet , in order to present a stronger voice in our plea for our just due.

The Treasury and OTC were not doing their job !!
Therefore, the Treasury has a moral obligation to "bail" us out instead of rewarding the criminals !!

The rules have been thrown out.
The FDIC has been holding our money for over four months. Since Indymac bank is still in Federal Receivership, this ease of deposit limits enacted should be retroactive.

We have been swept under the rug!

Please e-mail me your personal e-mail contact and telephone number so we can all get in touch.
I would love to hear what steps anyone has taken so far.

LET'S MAKE SOME NOISE !!!

We need to be acknowledged NOW before we become old news.

I believe there is strength in numbers - let's work together for what is rightfully ours !!!!

--------------------------------------------------------------------------------
Make your life easier

[kumbaya]

Gina, MK, and others,

I have also lost substantial amount of money because of Indymac and I am interested in taking part in petition as well. How can I contact you and/or others?

[hamir]

All of the uninsured depositors.
There is a new blog in pasadena star news - link below -
please go to the site and put your comments and lets get some attention. It just got posted an hour ago on 12/26/2008

http://www.topix.net/forum/source/pasadena-star-news/TVIOAF740VK34NUSL#lastPost

[Sarah]

Hi, I lost a lot of money. How can I get hold of everyone regarding this matter? We need to get our voice heard.

[richard]

My wife and I are out 202,000 due to the Indymac failure. Now that the assets are being sold is there a chance we might recover some of our "uninsured assets"?

[M Kishore]

Any Indymac depositor who is not already a part of this, please join us at www.indymacdepositors.com.

CONTACT:
Lisa Marshall - 310-344-4098, indymacdepositors@gmail.com 'http://www.indymacdepositors.com'
Hamir Bhatia - 714-269-0252, acsvision@hotmail.com
Fran Quittel - 626-864-1400/cell, francq@aol.com, 'http://www.fdicbusinessalert.com'

Thanks.

[iftikhar ahmed]

I like to know if anybody making any effort to collect outstanding 50% of uninsred deposits of indymac Bank held by fdic issued recevership. Please contact phone# (314)503-1195 ask for iffy and leave your phone#. iffy638@yahoo.com