This March in the post IndyMac Im Never Coming Back, I wrote how as soon as my CD matured I closed out my account.
This morning my CD with IndyMac bank matured. IndyMac has the lowest rating a bank can receive with Safe and Sound ratings. After seeing Bear Stearns implode in days, I didnt need much encouragement to close that account out immediately.
This weekend I met a friend of a man who had money in a bank that went under. His account was FDIC insured. It took the government two years to get his money back.
Today the Wall Street Journal reported how regulators had arrived at the bank and they are working on:
…a plan to shore up the company’s “safety and soundness.”
Since closing my CD, the IndyMAC stock (IMB) has dropped 86% and is now selling for a mere 74 cents a share. I only wish I had used my money to short that stock.
On June 18th, I hinted that another bank may be in trouble in the post I Wouldn’t Bank There.
There is a bank that is popular with many people here in Seattle. It even has our state name in its name. Well a few of my mutual friends have heard my reasons why Id move my money to a different bank.
The bank I was thinking about has dropped 15% in value just in the last 2 weeks. Do you know how safe your bank is?
Jul 11, 2008 — 8:33 pm
Charles Shumer, D-NY, started this run on IndyMac Bank. I hold him responsible.
Jul 11, 2008 — 11:58 pm
Writing bad loans and not understanding risk is what did IndyMac in, not comments by some economically illiterate senator.