Dr. Housing Bubble 07/18/08

[Crewleader]

July 18th, 2008

IndyMac Bank: Bank Failure, Long Lines, and a Real Home of Genius.
Another Reason why IndyMac Bank Failed.

It has been one week since Pasadena based IndyMac Bank was taken over by the FDIC. After the market closed on Friday, the FDIC had assumed control over the troubled institution which was the second largest bank failure in history with assets totaling $32 billion. Initially, since it had been a very long time since a bank of this size had collapsed, many did not know what to expect. Uncertainty was fueled over the weekend when people were unable to access their accounts. On their website, a FDIC page was posted telling customers that the bank was now under full control of the FDIC.

As the institution opened on Monday, uncertainty turned into nervousness. Report after report discussed how people were withdrawing their money from the bank, even those who had insured deposits under the $100,000 FDIC limit. The mass influx of people overwhelmed the resources of the institution and many had to return the subsequent day.

At this point, people started worrying more about simply getting their money out. Bank lines and lists started to make their rounds in various locations:

http://www.doctorhousingbubble.com/indymac-bank-bank-failure-long-lines-and-a-real-home-of-genius-another-reason-why-indymac-bank-failed/