A run on the bank at IndyMac? ...... These are interesting times.

[marmar]

from CBS11tv:



Angry IndyMac Customers Prompt Police Response



LOS ANGELES (AP) ― Like dozens of others waiting in line with her, Joan Rubin said she was drawn to IndyMac Bank by the high interest rates it paid and the friendly service her local branch provided.

All that was a memory on Tuesday, however, as Rubin and about 200 other anxious, embittered and sometimes angry customers swarmed an IndyMac bank branch in the San Fernando Valley, creating a Depression Era-like scene as they demanded their money just four days after the failing bank was seized by federal regulators.

"I've already lost three nights of sleep and three days of eating; now I'm done," Rubin, 52, said as she sat in a beach chair on the sidewalk in stifling heat. She planned to empty her account following the failure of the Pasadena-based bank, which has 33 branches, all in Southern California.

"It's a very sad day in America," Rubin said.

At one point police had to be called to the branch in the city's normally quiet Encino neighborhood. Tempers grew short when customers who had arrived before dawn accused others of cutting in line.

Some of the line jumpers had been turned away the day before but were given vouchers granting priority by bank employees.

Police quickly restored order without arrests, and as the day progressed people were divided into two lines that together stretched for nearly an entire block. People wanting to close accounts were let in, in groups of five. ......(more)

The complete piece is at: http://cbs11tv.com/national/fed.seizes.indymac.2.771576.html

[loveable liberal]

1. Cutting in line... what are you, 6 years old? nt

[groovedaddy]

2. Dog eat dog time...it ain't pretty!

How can anyone in their right mind EVER vote republican again?

[still_one]

3. These are not particularly astute people. For one, she let her account excced 100K

instead of opening a seperate account. FDIC is very clear on this, each account is insured up to 100K.

I don't particularly have much sympathey for those people that exceeded the 100K limit

The ones I feel sorry for are many losing their houses, because the loans were misrepresented, or outright fraud

The keating scandal, i.e. mccain S&L crisis, that was an outrage. Those people were told their money was insured, when it wasn't, and they lost it

[Virginia Dare]

5. I have sympathy for them.

and I don't think they're stupid, probably more naive.

For many of these people, this is probably their entire life savings, what they have to live on for the rest of their lives. These aren't rich assholes who can afford it.

You're right about it not being very smart to exceed the 100K limit, but I really don't think people ever imagined banks failing again im this country. Many people haven't been paying attention.

[still_one]

7. Did you read the article. She knew about the 100K FDIC limit, and used to follow it

she became complacent, and let it ride to more than 100K, instead of seperate accounts

Incidently, the feds say they are going to cover both insured and NON-insured, so for her STUPIDITY, she is going to still get bailed out

[Virginia Dare]

10. I agree, and that's where the real problem is..

there are MANY MANY people out there like that. They trusted their banking institutions. BIG mistake. It all goes back to greed and failure of oversight. We'll ALL end up paying for it.

[still_one]

11. Agreed /nt

[trotsky]

4. The fruits of the Republican anti-government campaign.

We took steps during the Great Depression to protect people in these cases and prevent bank runs. If you have less than $100,000 in deposits you're fine! You will NOT lose your money! And this is a great thing, because the more people who panic and withdraw their money, the worse it will get for the bank, and the more likely it is to spread. Government working for the people. But Republicans hate this, so after decades of blaming government people either don't trust or don't believe it will be there for them.

And you know what, after 8 years of this inept and corrupt administration, I probably wouldn't trust the government to protect my money either. That's pretty sad.

[still_one]

8. The 100K limit still applies for each account. The repeal of Glass Stegal was signed by Clinton

and what reagan and bush had started with banking deregulation, Bill Clinton sealed the deal

[santamargarita]

6. This is typical for a 2 term Republican - remember Reagan?

Same shit, different right-wing asshole!

[still_one]

9. Yes, reagan started it, but Bill Clinton finialized banking deregulation /nt

[chelsea0011]

12. It's a Wonderful Life it ain't.

[melm00se]

13. my wife worked

for an S&L back in the early 90's and when they were taken over by the feds folks were lining up to pull their monies out.

She said that it was scary when the feds rolled up:

they rolled up in the typical government sedan, they came in, told everyone to stand up and move away from their desks. they slapped "do not break this seal under penalty of..." tape on all the drawers, did a detailed audit and accounting of all monetary instruments, took away all the encoding machines and searched every individual before they were allowed to leave. They were then told to come back on Monday (this happened on Friday morning).

[marmar]

14. That sounds scary!

:scared:

[KharmaTrain]

15. This Is All More Mismanagement

The more they show this mess, the more people are watching and thinking if their money is safe. This is the last thing Paulson would want to convey...and the other day he warned that as many as 150 other banks were in bad shape as well. Which 150? Take a pick...

The cynic in me is thinking this is yet another game by this regime to whip up fear and outrage...in hopes to ram through the House and Senate an emergency bail-out for ALL the banks and giving Paulson a blank check to spend and print money as he sees fit.