FDIC Chair Sheila C. Bair issues statement on IndyMac conservatorship MortgagePress.comFDIC, IndyMac Bank, conservatorship, IndyMac Federal Bank, Sheila C. Bair
FDIC Chair Sheila C. Bair has issued the following statement
about IndyMac Federal Bank, FSB, the conservatorship created by the
FDIC to continue to provide banking services in communities served
by the former IndyMac Bank FSB.
"Over the past weekend, I have seen news reports which have
fairly and accurately reported on the conversion of Indy Mac Bank
into a conservatorship operated by the FDIC. I have also seen
inaccurate and inflammatory reporting which could well cause
needless, unnecessary worry and angst among bank depositors
throughout the country.
That fact is that for insured depositors, IndyMac's conversion
has been largely a non-event. The more than 200,000 customers of
IndyMac with deposits of $18 billion are fully protected. It's
important to keep in mind that the small percentage of uninsured
are still covered for their insured amounts and half of their
uninsured money. As assets of IndyMac are sold, they may receive
even more. They have had continued access to their funds through
ATMs, debit cards, and writing checks over the weekend, and on
Monday morning, it will be business as usual.
All bank depositors should understand that their insured
deposits are safe. IndyMac is only one of 8,494 depository
institutions operating throughout the country and represents only
0.2 percent of banking industry assets. The overwhelming majority
of banks in this country are safe and sound. The chance that your
own bank will be taken over by the FDIC is extremely remote. And if
that does happen, you will continue to have virtually uninterrupted
access to your insured deposits.
All bank depositors should also understand that they can have
insurance coverage in excess of the basic limits of $100,000 per
institution, with an additional $250,000 per institution for IRAs.
For instance, subject to certain conditions, single and joint
accounts are separately insured, and revocable trusts generally
provide $100,000 of coverage per beneficiary. If you have any
questions about whether your deposits are insured, we encourage you
to consult with your bank or contact our deposit insurance
specialists at 1-877-ASK-FDIC. If you find that you are not fully
insured, it may be possible to restructure your accounts to bring
your deposits below the insured limits. But first get the facts
before making any changes in your accounts or banking
The banking system in this country remains on a solid footing
through the guarantees provided by FDIC insurance. Our
industry-funded reserves are strong and our insurance guarantee is
backed by the full faith and credit of the United State Government.
No bank depositor has ever lost a penny of insured deposits. On
this, our 75th anniversary, we will continue that proud
For more information, visit www.fdic.gov or www.indymacbank.com.