Indymac Bank

Jul 13, 2008 3 Replies
H

I have about $100k IRA in a CD that I put into Indymac this month, just prior to their going belly up. FDIC insures them, so I don't anticipate losing my bucks, but a couple of quick questions occur to me, if you folks would care to respond:


  1. I switched the IRA CD to Indymac because the rate was attractive, of course - a little over 4% on the yearly rate. Will that rate still be honored now that their doors are closed? By the new custodian, I mean.


  1. Should I transfer the funds elsewhere, anyway? Assuming I can get in touch with the folks who now have all of Indy's assets, that is. If the 4% rate will still be paid, no problem leaving the money there, but I am nervous about it.



Has anyone here gone thru this before? A first time for me, I confess.



Hugh


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A

According to an article in yesterday's Inland Valley Daily Bulletin (a paper not known for its business couth) and a Q&A on the LA Times web page

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Customers can call (866) 806-5919 toll-free or go to
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/failed/IndyMac.html for more information.

The bank's lobby closed at 3 pm local time and will reopen Monday morning under a slightly different name. There will be no internet access to ones account during that time but there will be ATM and Debit card access. Checks written and automatic debits and credits will be processed as usual. Those with over $100K in their account (about

10,000 accounts with $1B total)) will be limited to withdrawing 50% of the amount in their account.

The FDIC hopes to sell the accounts, etc to some other bank. Should the FDIC make money on the sale the over $100K crowd would get to share the excess.

Regulators have the right to change deposit rates and existing contracts from the date of receivership. It is unclear whether they will cut rates.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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R

Qualified IRAs are FDIC insured to $250,000. General demand-deposit accounts only to $100,000. You have no problem.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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G

any interest earned above his 100k initial deposit is at risk.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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