Indymac Uninsured Deposits Half of Original Estimate

August 13, 2008 No Comments »


File this under bittersweet.

The FDIC confirmed today that the amount of uninsured deposits at failed bank and mortgage lender Indymac Bancorp were well below original estimates, according to statements gathered by the LA Times.

The independent agency noted that just $600 million in uninsured deposits were held at the Pasadena, CA-based Alt-A lender, down from initial figures of around $1 billion.

Additionally, about half of that $600 million has already been returned to depositors, who include individuals, businesses, and non-profits.

And as the FDIC continues to sell the bank’s assets, depositors could stand to see more of their money returned.

A month ago, scores of Indymac customers stormed branches nationwide, standing in snaking lines for hours to withdraw any and all assets they had with the failed bank.

Indymac had about $19 billion in deposits when it was declared insolvent and taken over by the FDIC on July 11.

In an effort to save money, the bank is also offering 27,000 home equity line of credit customers a two percent rebate up to $1,500 if they pay off and close their accounts. Good luck…

And said more than 60,000 of its borrowers are 60 days+ behind on their mortgage payments, but could benefit from a loan modification program currently in the works.

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