RIP IndyMac
July 11, 2008
Earlier this evening, IndyMac Bank (NYSE: IMB) was seized by US banking regulators after depositors decided it was time to withdrawal their cash from the distressed bank. Unfortunately, many depositors - roughly 10,000 - had more than the $100,000 FDIC insured funds with the bank, and will likely lose all uninsured deposits. It was yet another dark day for Wall Street.
While it’s not surprising that IndyMac, which was founded in 1984 in part by former Countrywide CEO Angelo Mozilo, succumbed to its oppressive load of mortgages in a terrible housing market, it’s certainly sad to see many hard-working individuals lose their savings.
For all those who have accounts with small - under $500 million market capitalization - banks, heed this warning: this is not the last victim of the housing crash. Keeping your savings safe is the #1 priority right now, and small banks are not safe.
My deepest sympathies to those who were suckered into believing IMB was safe. The lies of Wall Street know no bounds.
Good luck out there; it’s a very dangerous market.
Freund Investing Managing Member Ryan Freund holds no position in any of the companies mentioned in this article. Freund Investing has a solid Disclosure Policy.
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