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If you’re feeling rather smug for being smart enough to keep your deposits under the FDIC insurance limit of $100k in such turbulent times you might want to keep reading. The recent takeover of IndyMac by the FDIC and the subsequent botched management should be a cautionary tale to you all. Just because your money’s insured doesn’t mean you’ll get it out right away.
From our friend Peter at the LA Land blog on the debacle that has been the FDIC management of IndyMac:
On Day 3 of the financial hostage drama otherwise known as IndyMac Federal, someone needs to say it: The government’s takeover of IndyMac has been a stunning display of cluelessness and incompetence and has given bank customers every reason to feel anxious and angry.
If there is financial unease and anxiousness in America today, it is partly the FDIC’s fault.
For the third day in a row, the federal government this morning appeared unprepared to deal with bank customers who simply want their money. Frazzled, anxious and angry Californians — many of them elderly — are waiting on blazing sidewalks for the third day in a row, while security guards block the doors to the bank’s branches. An elderly woman fainted while waiting in line in Pasadena. Depositors were threatened with arrest yesterday in Encino. This is how the government treats its customers?
