Indy Mac was taken over by the federal government.  The bank is bankrupt.  FDIC insures up to 100k per account (tax payer money).  Anything over 100k in an account, including IRAs or other retirement accounts, you lose.  It's gone.  Of course though, if you borrowed money from them, you still have to pay it back.

After the securities acts of '29 and '31 and the volumes and volumes of banking regulation we have in the country specifically meant to make sure this doesn't happen, how the fuck can this happen?  There is so much damn regulation in banking it takes billions just to govern the damn industry.  

WTF?!?!?!?!?!?!?!?!?  

Lesson of the day: Never put more than $100,000 in any one bank.

These giants needed government attention over the weekend, too.



Quote:

Government Steps In To Rescue Fannie, Freddie by Joshua Brockman The federal government moved in to help bolster Fannie Mae and Freddie Mac on Sunday with a Treasury Department proposal that sets the stage for a government-orchestrated rescue. The Treasury Department disclosed a three-part plan... ...temporarily increase Fannie and Freddie's line of credit with the Treasury; give the Treasury Department the ability to purchase stock in either of the two companies, and give the Federal Reserve a say in setting financial requirements and standards for the companies. Why did the government choose to step in over the weekend? The rescue effort was orchestrated to calm investors worldwide and to prevent the collapse of these two housing finance giants. Fannie and Freddie own or guarantee more than $5 trillion in mortgages -- nearly half of all the mortgages issued in the United States. START PRINTPAGEMultimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to or END PRINTPAGE

I think I remember the gov stepping in to rescue Chrysler Corp. in the early eighties in a similar fashion while it was at around $3-4 a share.  With Lee Iaccoca, it rebounded again by the late 80's to $30 a share.

Ya know, it's been a while since I was in school, but back in those days, we were required to sit in those dull HISTORY classes....  seems I remember "hearing" something about the Great Depression... didn't something like this happen back then?

Banks going under, people loosing all their money (don't think they had FDIC back then, but use your imagination a little)... people going to the bank and finding it closed.... Of course, we didn't have 24 hour TV back then to keep us "up-to-the-minute" on the happenings of all this and it took a while to figure out that this country was in a mess and by then everyone was going hungry...

I asked a history teacher one time why we had to study that dull stuff -- he replied, "so we don't repeat the mistakes of the past." Ummmm, interesting theory.....

Hugs BD

IndyMac has a huge Mortgage dept. They were one of the largest subprime lenders nationwide. I think this is their biggest problem. All the foreclosures are coming down the pike. IndyMac had a unique set of guidelines for their inderwriters. something to the effect of..."if they can fog a mirror, give em a loan"...........sadly the financial backbone broke.
Fannie Mae and Freddie Mac will both be ok.
It's gonna be a bumpy ride for a while, so hunker down, get your financial house in order, you'll come out just fine............RIGHT, B_MAN???????????????????????????????????????????????/////

Cathi

wrote on Jul 15^th, 2008 at 7:00am:

Lesson of the day: Never put more than $100,000 in any one bank.

A good rule of thumb is 90k....that way as interest piles up you don't loose your interest if you get slack and don't move money around like you should. Retirement accounts are insured to 250k.

If someone has a fair sum of cash that they wish to remain in government insured accounts, go here: START PRINTPAGEMultimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to or END PRINTPAGE and read. You can use this method and be insured up to 50 million, although I don't have a clue why someone with 50 mil would want to have all of it sitting in banks......

B

BMoneeTheMoneeMan wrote on Jul 15^th, 2008 at 1:06am:

Indy Mac was taken over by the federal government.  The bank is bankrupt.  FDIC insures up to 100k per account (tax payer money).  Anything over 100k in an account, including IRAs or other retirement accounts, you lose.  It's gone.  Of course though, if you borrowed money from them, you still have to pay it back. After the securities acts of '29 and '31 and the volumes and volumes of banking regulation we have in the country specifically meant to make sure this doesn't happen, how the fuck can this happen?  There is so much damn regulation in banking it takes billions just to govern the damn industry.   WTF?!?!?!?!?!?!?!?!?

Without that regulation, you'd lose the first $100,000 too. It was fought against by all those that don't like dealing with the little guy. What's left of the New Deal works very well for us.

Charlie