Industry News

Bank run fears at Indymac

Real estate roundup
Published on Jul 1, 2008

Schumer letters make Indymac depositors edgy In an attempt to reassure depositors that the company is not near collapse, officials with the parent company of Indymac Bank on Monday issued a response to letters Sen. Charles Schumer, D-N.Y., sent to federal bank regulators last week. In the letters, Schumer voiced concern that "Indymac's financial deterioration poses significant risks to both taxpayers and borrowers." Indymac said Schumer's letters to the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the Federal Home Loan Bank of San Francisco "leave the wrong impression" about the bank's past and present practices. The letters prompted depositors to withdraw about $100 million on Friday and Saturday, Indymac officials said, "despite the fact that over 96 percent of our ... $19 billion in deposits are fully insured" by the FDIC. Indymac Bank is working on a plan with regulators to improve the safety and soundness of the b...

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