Here is what I don't understand about IndyMac

[The Kin]

Quote from taodr:

Wasn't Indymac started and run by Angelo Mozilo, of countrywide fame ? One guy who should be jailed for life !

That's hilarious if true. Mozilo just gets better and better.

 

[kowboy]

Quote from ProfitTakgFool:

Not necessarily true. What about businesses who keep $1M in their checking account to make payroll, for example? Should they keep 10 accounts open to manage that risk?

My understanding it that larger depositors can ask for a letter of collateraliztion from the bank against assets held by the bank to further cushion the risk of loss. Some banks do and some don't.

 

[bahdabing]

Quote from ProfitTakgFool:

Not necessarily true. What about businesses who keep $1M in their checking account to make payroll, for example? Should they keep 10 accounts open to manage that risk?

If you want that million guaranteed --the answer is yes or have a large, reputable payroll company do it for you. that way they handle all the risk.

 

[Cutten]

Just to give people an idea of how useful bank pronouncements are, here's one from 2 weeks ago by IndyMac:

http://www.latimes.com/business/la-fi-indymac1-2008jul01,0,2858219.story

"Battling rumors that it may collapse, Pasadena-based IndyMac Bancorp acknowledged Monday that its financial position had deteriorated but described the fears as overblown and said it was working with regulators to improve its "safety and soundness."

Lol.

P.S. Yeah, it was co-founded by Mozilo in the 80s.

 

[blackjack007]

for checking accounts over $100k, you're fubar, but for cd's you can use http://www.cdars.com/index.php

the rates also aren't as attractive as if you shopped individually but you get safety and convenience.