I'm glad to see that the uninsured deposits weren't as high as first reported. Several readers have reported having over $100K at IndyMac through the use of trust accounts. I believe all have been able to get back their insured deposits, although they did experience delays and some hassles. Due to the extra time and hassles, many have said they'll keep below $100K in the future. I have more details about one of my reader's experience at the bottom of this post about extending FDIC insurance past $100K.
One strange thing mentioned in the LA Times article is that the FDIC is seeking to transfer only $7 billion out of the $19 billion of IndyMac deposits to a future buyer of the bank. According to the article:
The FDIC returned to customers most of the other deposits because they were accruing high interest rates or the account holders were from outside Southern California -- making the deposits unattractive to potential buyers.
I suppose many of these deposits were brokered deposits, but what about internet deposits? IndyMac Federal Bank is still offering some high CD and money market internet rates. In addition, many readers have been able to get IndyMac to match very high rates from WaMu and from other banks. Perhaps internet deposits are considered attractive to potential bank buyers?
To review all of my recent IndyMac posts, please refer to this page.