Friday, July 11, 2008

IndyMac Bank shut down

Pasadena Based IndyMac Bank was shutdown by the government.

Failed Bank Information Information for IndyMac Bank, F.S.B., Pasadena, CA

1. Introduction
2. Press Release
3. Acquiring Financial Institution
4. Question and Answer Sheet
5. Banking Services
6. Loan Customers
7. Priority of Claims
8. Dividend Information
9. Brokered Deposits

I. Introduction
On July 11, 2008, IndyMac Bank, F.S.B., Pasadena, CA was closed by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) was named Conservator. All non-brokered insured deposit accounts and substantially all of the assets of IndyMac Bank, F.S.B. have been transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), Pasadena, CA ("assuming institution") a newly chartered full-service FDIC-insured institution. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should answer many of your questions.
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II. Press Release
The FDIC has issued a press release (PR-56-2008) about the institution's closure. If you represent a media outlet and would like information about the closure, in California, please contact David Barr with the Office of Public Affairs at 703-622-4790, otherwise please contact Andrew Gray at 202-898-7192 or 202-494-1049.
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III. Acquiring Financial Institution
All non-brokered insured deposit accounts have been transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), Pasadena, CA ("assuming institution") a newly chartered full-service FDIC-insured institution. The OTS appointed the FDIC conservator of IndyMac Federal Bank. All insured deposit accounts will be available as usual during regular business hours starting July 14, 2008.

Principal and interest on insured accounts, through July 11, 2008, are fully insured by the FDIC, up to the insurance limit of $100,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts can be insured for more than the $100,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit.

All accounts that exceed the $100,000 insurance limit, and/or all accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If you think you might have uninsured deposits you should call the FDIC Call Center to arrange for a telephone interview with a Claims Agent at 866-806-5919.
FDIC Call Center
Hours of Operation
Friday, July 11, 2008 3:00 p.m. – 9:00 p.m. Pacific
Saturday, July 12, 2008 8:00 a.m. – 8:00 p.m. Pacific
Sunday, July 13, 2008 8:00 a.m. – 6:00 p.m. Pacific
Monday through Friday, 8:00 a.m. – 8:00 p.m. Pacific
If it is determined that you have uninsured funds, the FDIC will generate and mail to you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the disposal of the assets of IndyMac Bank, F.S.B. This means that you will eventually recover some of your uninsured funds. The FDIC declared a 50% advance dividend for uninsured deposits.

To find out more about FDIC Deposit Insurance:

* Visit EDIE the FDIC's Electronic Deposit Insurance Estimator
* View the FDIC Deposit Insurance Coverage Video

Checks that were drawn on IndyMac Bank, F.S.B. will be honored up to your available balance or the insured amount. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with IndyMac Federal Bank. A hold may be in place on deposits accounts due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will be held.
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V. Banking Services
The Automated Teller Machines (ATM) will remain available.

As of July 14, 2008 you may continue to use the services to which you previously had access, such as, online service, safe deposit boxes, night deposit boxes, wire services, etc.

Your checks will be processed as usual. All outstanding checks will be paid against your available insured balance(s) as if no change had occurred. IndyMac Federal Bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact IndyMac Federal Bank, Customer Service Department, at 800-998-2900. An account representative will clear up any confusion about the validity of your checks.

All interest accrued through Friday, will be paid at your same rate. IndyMac Federal Bank will be reviewing rates and will provide further information soon. You will be notified of any changes.

Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to IndyMac Federal Bank. If you have any questions or special requests, you may contact a representative of your assuming institution at 800-998-2900.
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VI. Loan Customers
If you had a loan with IndyMac Bank, F.S.B., you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to your promissory note with the failed institution. Checks should be made payable as usual and sent to the same address until further notice.

For all questions regarding new loans and the lending policies of IndyMac Federal Bank, please contact 800-998-2900 or visit the IndyMac Federal Bank website at
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VII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

1. Depositors
2. General Unsecured Creditors
3. Subordinated Debt
4. Stockholders

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VIII. Dividend Information
The FDIC declared a 50% advance dividend for uninsured deposits.

Dividend Information on Failed Financial Institutions
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IX. Brokered Deposits
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.

Deposit Broker Processing Guide
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General Disclaimer

Inman news is reporting:


Feds close down IndyMac Bank

In the biggest bank failure of the housing downturn to date, federal banking regulators today closed IndyMac Bank FSB, naming the Federal Deposit Insurance Corp. as conservator. ... Read full story here.


Anonymous said...

What’s up! Your blog is great but I hate banks. I had to deal with plenty of them and it did not work out. All the time there were troubles and I could not resolve them in my favor. From I learned about this IndyMac Bank. At first, it seemed to be a good one, but later on I was disappointed. I should have taken into consideration those complaints I read about IndyMac Bank on

Anonymous said...

Hello. What a great blog. Concerning IndyMac Bank which I happened to notice here I have to say – it is not that bad. However, on the clients complain about the bank, I have to say that you have to listen to people’s experience but also it is good to run a risk and try it yourself. Who knows maybe you will be a satisfied customer.

Anonymous said...

Hello. I find your blog very interesting. I think that everyone had something to do with banks. It is hard to choose a good and reliable one. After so many banks I had to deal with I should say that Indymac Bank is the best one. I learned about it from Although the feedbacks about the company were not very positive I still ran a risk and went there.

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