The situation at Pasadena based IndyMac Bank reminds me of the scenarios my grandmother spoke of during the 1929 market crash. She told me people lined up outside banks demanding their money and banks finally had to shutter their doors and get police to keep people at bay.
Well IndyMac is closing offices and laying off emoloyees and people have been pulling cash out at the rate of $100 million a day. If that's not a run on the bank I don't know what is. The difference between now and 1929 is the FDIC. They have stepped in and siezed control of the failing bank to cover the banks losses for insured depositors. The failure marks the second largest bank failure in American history.
Take a look at the website for the bank. Pretty grim stuff. The FDIC has replaced the site with a one page letter detailing that all deposits of $100,000 and under are federally insured. All that is missing is a footnote, take two asprin and call back in the morning.
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