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10,000 Potentially Uninsured Depositers @ IndyMac

Posted by Sean | Posted under News | July 12, 2008

IndyMac failure was not surprising, but I’m surprised how many people are outside FDIC.

At the time of closing, IndyMac had about $1 billion of potentially uninsured deposits held by about 10,000 depositors. The FDIC said it would pay those depositors an advance dividend equal to 50 percent of the uninsured amount.

That means an average of $100,000 per uninsured depositor. No telling how equally or unequally it is distributed, although the anecdote from the article is in line with estimates:

At another branch down the road, a man who said he had more than $200,000 (100,000 pounds) in an account — twice what is normally FDIC guaranteed — argued with a security guard who was closing up.

more: U.S. seizes IndyMac as troubles spread (reuters.com)

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2 Comments so far
  1. MoneyEnergy July 12, 2008 11:10 am

    Interesting. Does this mean people had money with this institution without checking whether they were a member of the FDIC? Conversely, did IndyMac try to do business without becoming a member of the FDIC? Amazing. I see they’re reopening on Monday as a member of the FDIC. Why weren’t they in the first place?

  2. Sean July 12, 2008 11:16 am

    Most depositors were fully covered, but some were over the limits.

    FYI,

    FDIC.gov now has Question and Answer Sheet for IndyMac Bank:
    http://www.fdic.gov/bank/individual/failed/indymac_q_and_a.html