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Cops Threaten IndyMac Customers Who Want Their Money

dailynews.com — Police ordered angry customers lined up outside an IndyMac Bank branch to remain calm or face arrest Tuesday as they tried to pull their money on the second day of the failed institution's federal takeover. At least three police squad cars showed up early Tuesday as tensions rose outside the San Fernando Valley branch of Pasadena-based IndyMac.

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  • Forcough, on 07/15/2008, -8/+135In Soviet Russia, people rob banks but in capitalist America banks rob you!
    • gyrfalcon, on 07/17/2008, -0/+5Maybe the idiots will wake up and discover the wonders of credit unions...
      • DyceFreak, on 07/17/2008, -0/+3lol... you must mean, "the credit union"
      • bjornski, on 07/17/2008, -0/+3Too much like socialism for many of them.
    • sassip, on 07/17/2008, -0/+8Best way to rob a bank? ... own one!
      • bjornski, on 07/17/2008, -0/+2Just ask Charles Keating.

        Right, Mr McCain?
    • richmomz, on 07/17/2008, -0/+5In Capitalist America, the crooks call the cops on YOU!
  • dubhousing, on 07/16/2008, -3/+40This is crazy. Do we have to resort to my (immigrant) grandmother's mindstate of not trusting banks as a result of this?

    On a separate note, I think it's unfortunate that people with more than $100,000 in an individual account lost that portion of their money, but:
    a) that's a lot of fricking money, and
    b) the FDIC policy is long-standing and contractual.
    • Pssdoff, on 07/16/2008, -4/+33Its their own fault for having over 100,000 US dollars in one bank. I don't feel sorry for them at all, that was just plain stupid.
      • heliox, on 07/17/2008, -10/+1.
      • RationalXubrnce, on 07/17/2008, -8/+9 It didn't used to be stupid when the US was a first world nation.
      • Pake, on 07/17/2008, -1/+11No Rational, it was even stupid then.
      • rebizzle9, on 07/17/2008, -1/+13any financial rep that told them to put more than ~96k in one account (with room for interest) is a tard
      • gyrfalcon, on 07/17/2008, -6/+5In other news... Digg members made up 80% of the line.
      • jeff4379, on 07/17/2008, -0/+1You can have more than 100,000 in an account and still maintain FDIC insurance. It's called CDARS. Basically it's a network of financial institutions that "share" the account, so while you have 1 account, the money is recorded at more than one bank to maintain FDIC insurance.
    • desotohawk, on 07/16/2008, -14/+7the best thing to do is to buy gold, silver, AMMUNITION, GUNS and FOOD and keep it locked up where no one knows about it. it is not safe to keep your savings in a bank. banks cannot be trusted, this problem will only get worse as more and more banks start to fail. the fed cannot prop them all up as it will only perpetuate the problems we are facing.
      • goofygarber, on 07/16/2008, -8/+19No, that is not the best thing to do unless you want to live in the woods and throw cats at people.
      • RationalXubrnce, on 07/17/2008, -4/+7 In 5 or 10 years people wont be laughing so hard at your mindset,
      • gyrfalcon, on 07/17/2008, -1/+6I own gold, silver, guns, ammo, cats and food... That being said I think you're being a bit stupid.

        You can keep currency in a Credit Union or a somewhere more reliable then a chain bank. Even with guns, gold, silver, ammo and food...you can still get f'ed if the country goes upside down.

        Just remember the only thing you own is the land under your own two feet.
      • mnky9800n, on 07/17/2008, -2/+3That only works if you just saw Red Dawn, have recently read a Left Behind series book (God help us if you have), or are currently wearing your tin foil hat.
      • erydan, on 07/17/2008, -2/+2*****. I bought guns, gold, ammunition, and food. Hid it in a secret room under my basement. It cost me so much I had to take out a 2nd mortgage. They took my Guns, they took my food and my gold, my ammunition and my secret room.

        Now what genius?
      • alaskanassassin, on 07/17/2008, -0/+3@erydan

        should have hid them in a more secure and remote place, genius.
      • publikjohn, on 07/17/2008, -0/+1@desotohawk, your absolutely right, we have been on a collision course with bankruptcy for decades. the dollar, stocks, and banks are going to take a hit. the fed propping them up with valueless dollars will only make problems worse. it will be tangible goods that become valuable like ammunition, guns and food. i would also mention shoes, clothing, diesel fuel, and @goofygarber living in the woods might not be such a bad idea comparing that to living in new orleans during a catastrophic event. i dont know what good throwing cats at people will do but if it makes you feel better the go for it.
    • DeFex, on 07/17/2008, -0/+10Dont worry those people were warned weeks ago.
    • quetzzz, on 07/17/2008, -2/+8My caddie chauffeur informs me that a bank is a place where people put money that isn't properly invested.
      • PopcornDave, on 07/17/2008, -0/+13You're driven in a golf cart? Are things *that* bad?
      • boobsbr, on 07/17/2008, -0/+2i hate this "everyone should invest" mentality.
  • StingingNettle, on 07/16/2008, -6/+69They should be threatening the actual criminals with arrest instead.
    • Olfster, on 07/16/2008, -2/+19Arrest the mortgage brokers and real estate agents that you thought were looking out for your best interest? Nah. Why do that? Then everyone will have to show some accountability including our representatives in Washington.
    • digitalhair, on 07/17/2008, -3/+5yeah... HELL YEAH
    • DangerCollie, on 07/17/2008, -3/+9I'm not sure they can tell the difference anymore. With more people in jail than any other civilized nation, it's easy to understand that law enforcement can't separate citizen from criminal. The treatment seems pretty similar these days.
    • IKORKYI, on 07/17/2008, -1/+3they threatened them with arrest if they cause a public distrubance....not like they threatened them with a knife for breathing

      buried for being a drama queen
    • desotohawk, on 07/17/2008, -0/+1arrest the politicians and bankers. scum
  • dupswapdrop, on 07/16/2008, -12/+17It's you're money but we are keeping it!
  • MarkEarhart, on 07/16/2008, -10/+24When we hang the terrorists in our own government we must go after bankers as well. They are the scum of the earth. There are also many monopolistic corporations which must be broken up and their owners hanged for their role in manipulating politics.
    • DeFex, on 07/17/2008, -1/+8dont forget the lawyers!
    • Sawta, on 07/17/2008, -5/+2In fact, let's just brutally murder anyone who has any aspirations to make money. Ever.
  • srodolff, on 07/16/2008, -19/+44Hear are my two cents.....

    The Feds took over IndyMac over the weekend. Radio broadcasts served a steady stream of IndyMac has been seized messages.

    Move to Monday morning. Hundreds of people have lined up overnight to get into the bank. The Feds acted like no big deal and waltzed in at 8AM. Panic ensues, people in line pass out from the heat.

    The feds should have treated this like the crisis it was. Bus the people to an air-conditioned building with seats. Give them drinks and snacks.Process them all until no one is left (no matter how long it takes).

    This was just like Katrina only smaller scale.
    • GovernmentSp00k, on 07/16/2008, -11/+10Precisely! Good insight srodolff. It would have been no problem to do that. But they are too greedy to think of such humane solutions. Instead they sick the cops on people, threatening with arrest and creating even more stress. What for? There's absolutely no need for that level of hostility. The people have every right to be furious. Why not make it BETTER for them? Noo! they can't do that! It has to be an aggravating experience. And to think how they would react in time of much greater crisis. This is the same government that's going to protect us from terrorism? Please. We're on our own to fend for ourselves. They will leave us out to dry like yesterday's laundry. We're on our own. That's what their pitiful so-called responses say to me.
    • Motocompo, on 07/17/2008, -5/+24Since when is it the taxpayers responsibility to keep people from being stupid? If they were passing out from the heat, maybe they should have brought some water/called up a friend. Panics happen because people are stupid... not because the government took it too lightly.

      And going back to Katrina... you don't build a city under sea level!
      • mnky9800n, on 07/17/2008, -2/+4Thank you! I think the only more asinine decision, in this instance, then building a city underwater is BUILDING IT AGAIN!
      • jeff4379, on 07/17/2008, -0/+1It's not the taxpayers responsibility, the FDIC is self funded.

        From FDIC.gov:
        The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. With an insurance fund totaling more than $49 billion, the FDIC insures more than $3 trillion of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country.
    • DangerCollie, on 07/17/2008, -2/+3Exactly right. With the same people appointing partisan loyalists to key government positions instead of people actually qualified to do the job. So is it any big surprise that they manage the credit crisis with the same level of competence they managed Katrina, the war in Iraq, Afghanistan, and almost every other facet of government these days.

      At least it's full employment for Oral Roberts grads.
    • DaDrake, on 07/17/2008, -1/+3Or they could set up a hotline that would explain the situation to the uninformed. Oh wait they do. But instead, lets have the government busing people around for something they can EASILY check on in their very own homes. The money been locked up by the FDIC, doesn't matter if your there at 8 am or 3 days later.
    • Skooma714, on 07/17/2008, -2/+2That is what a company would at least think about doing.

      This is the government. They stole money to buy out this bank. They don't give a ***** about you.
    • JAWS, on 07/17/2008, -1/+1First part of argument = sound.

      But please tell me, for god's sake, how you can compare this with Katrina?! That's like saying the juicy fart I just dropped in my seat is kinda like the gas warfare rampant in WWI, but on a smaller scale.
      • srodolff, on 07/17/2008, -0/+2Umm, it took the government 5 DAYS to deliver water to the Superdome.

        Do I need to say more?
  • ducati748, on 07/16/2008, -3/+49Is it just me or did anyone else notice the fact that a few weeks worth of the Iraq war funding would probably cover IndyMac, Fannie, and Freddie in full? The Bush war machine is slowly draining the life out of the American people.
    • insomniac8400, on 07/16/2008, -0/+11Add to that the fact that all the money in circulation is about 6 trillion and Iraq has already costs us 750 billion(expected to rise to 1.2 trillion). And supposedly every dime spent on iraq was in deficit spending i.e. printing money to pay for it i.e. creating money out of thin air. Which means since 2001 iraq alone has caused 12% extra inflation on top of what the economy would normally produce. Bailing these companies out with deficit spending(definitely will be the case because every politician wants to lower taxes despite all this extra bail-out spending) is just going to cause even more inflation.
    • heliox, on 07/17/2008, -5/+4Or the amount of welfare checks in a month.
    • ajwinder, on 07/17/2008, -2/+9Yeah but thats just such a worthless analogy. The Iraq War is part of security spending to ensure our lives at home are safe for us, and that we all are better off. Bailing out banks and such, I mean, thats just meddlesome government antics.

      (sarcasm for all the broken radars out there)
  • GovernmentSp00k, on 07/16/2008, -15/+29Weird, cops viciously go after US citizens, people who want their money. Threaten with arrest and prosecution because they want what is rightfully theirs, but were scammed by a savings and loan. Yet law enforcement gives the banks a free pass.

    The people didn't do anything wrong, they are the ones defrauded. Why aren't the cops threatening the banks? Where are the arrest warrants for the CFO? Where is the investigation? To protect and serve! What a myth.
    • insomniac8400, on 07/16/2008, -9/+12They are on the street causing a riot. And in the end not everyone there has over 100k in the bank. So those people should be arrested for acting like idiots. If you have under 100k, you have no reason to act like a frantic idiot bum rushing the bank. Wait a week or two when it dies down and then go get your 100% safe money.
    • ajwinder, on 07/17/2008, -2/+15Yeah, you're right, the people didn't do anything wrong. They did something stupid. They freaked out because they thought that their federally insured bank accounts were going to be lost. Maybe I'm just jaded, but I have a hell of a hard time feeling sorry for people who act in ignorant ways.

      Stop. Stop spreading FUD. No one is being defrauded. Have you been to a bank? They print that federally insured ***** all over the place. Its gotta be on the front window of my bank in like 3 different places. Beyond that, the damn company fell apart. Its not like they built a boat out of peoples cold hard cash and set sail for Russia. The government did what it, by law, by contract, and in print, said it would do, and people flipped a ***** and caused a worthless ruckus. And why the hell would they arrest the CFO for bankruptcy? Its not a crime for a business to fail.

      However, beyond the retardation in the parent thread, I hope other people can appreciate that as hundreds of thousands of people waited through queues to get their iphones this weekend, you fast-forward to Monday and a boatload of people are waiting in lines to withdraw all their cash. Its just some interesting imagery.
      • gyrfalcon, on 07/17/2008, -3/+3@ajwinder

        No one will be defrauded till the US currency tanks, or the government goes completely bankrupt that is...
      • whorunbartertwn, on 07/17/2008, -1/+1Lovely false dichotomy you built there gyrfalcon.
      • insomniac8400, on 07/17/2008, -0/+1When they gave out crap loans purposely going against their own guidelines just to keep the amount of new loans at a high level, then the CEO damn well better be going to jail. This isn't an accident, or a failure because the market wasn't there for a new nail salon. This is a bank being ran by guys trying to get the stock as high as possible before they quit and move on to the next company to ***** up. Their loan regulations aren't law, but when you purposely bury an entire company trying to inflate the stock price with the public's money, the only word left is theft. And the public assumed you would follow your own standards when giving loans out with their money.
    • PolishLogic, on 07/17/2008, -1/+1When you decide to join reality, the rest of us might welcome you.

      Keep us posted.
    • whorunbartertwn, on 07/17/2008, -6/+3>Weird, cops viciously go after US citizens, people who want their money. Threaten with arrest and prosecution because they want what is rightfully theirs<

      Agreed! Enough of this police interference in attempting to keep order, they should have just set a time to open the door and say first come first serve Southwest Airlines mosh pit with 100k on the line. That would have resulted in a more fair distribution of available funds, resulted in no injuries, and would have surely demonstrated the bankers really care about the people.

      Darn pigs.
    • 10scott10, on 07/17/2008, -1/+4you have the right to get your money.

      you don't have the right to disturb the peace while you are doing it.


      also, shout out to my local paper.
      • 10scott10, on 07/17/2008, -1/+2it cut out the end of my comment.

        it was supposed to be


        you have the right to get your money.

        you don't have the right to disturb the peace while you are doing it.


        also, shout out to my local paper. you demonstration of bad reporting and horrible HTML
  • brainboy77, on 07/16/2008, -16/+7bush should be shot, then hanged. This sonofabitch is letting everything go along without intervention. he doesn't care if banks are going down, he's too busy taking blowjobs to exxon mobil.
    • Qtip42, on 07/16/2008, -5/+6Are you kidding me? This needs no intervention at all. Banks were obviously failing for the last year......pay attention to your money instead of depending on others. You lose.
    • heliox, on 07/17/2008, -3/+6What planet are you from *****?
    • Hiltonizer, on 07/17/2008, -2/+7actually genius... this is all courtesy of the federal reserve and congress allowing it to run wild....

      You actually think the president is anything more than a talking head?
    • gyrfalcon, on 07/17/2008, -0/+3If you want to to blame bush for everything be my guest... Sure he blew Trillions on Iraq, and took away basic civil liberties, but besides that he hasn't really screwed up the economy like you want to believe.

      It's the republican and democratic (read scumbag politicians) on corporate payrolls that got us to where we are at. Actually it's the scumbag politicians, stupid American citizenship, and the Corporate car sales men that got us where we are.
    • alaskanassassin, on 07/17/2008, -0/+1dumb ass people who think the President is all powerful.
  • colincornaby, on 07/16/2008, -18/+76Only on Digg would you find a bunch of people willing to fault police for trying to stop a riot.

    The police weren't threatening the customers because the customers wanted their money. They were threatening the customers because they were causing problems outside the bank.

    Ah, I see, according to Digg logic anyone who's been hurt by "the man" is allowed to cause random unrelated civic disorder any time they please and damage property and hurt others. That makes a lot of sense.
    • zebraz, on 07/17/2008, -6/+21Digg readers are by and large immature kids who have little comprehension of how the world works.
      • gyrfalcon, on 07/17/2008, -5/+6Completely agree...but they do know how to add an icon to their profile and spam Obama crap to the front page. :)
    • bombboyer, on 07/17/2008, -1/+9I logged in just to Digg your comment up colincornaby. A rare spot of sanity on Digg.
    • highps3, on 07/17/2008, -8/+1Youd have a much different opinion if it was your money and you were in danger of losing your house. I dont imagine any payments that are late to these peoples bills will be covered?

      Give the people THEIR money.

      • colincornaby, on 07/17/2008, -0/+5The people could HAVE their money if they would just wait in line without hurting each other or destroying property like crazed monkeys in a zoo.
    • Rikkochet, on 07/17/2008, -4/+5"Customers became infuriated, and police told them they could be arrested if they didn't remain calm." == ***** THE POLICE AND ***** THE RIAA AND ***** THE REPUBLICANS.

      Sigh. Oh Digg, what happened?
  • overkil6, on 07/17/2008, -5/+17Isn't this how the 'Great Depression' started in the 30's? People lined up at banks to get their money out before the vaults were empty?
    • Bootes, on 07/17/2008, -4/+16That's why the government insures the money you have at the bank now. Up to $100,000, this should be plastered all over the bank. That means that there's no need to worry, your money is still there and you can take it out. These people are just overreacting.
      • spinemangler, on 07/17/2008, -0/+2I think the point is that these folks have over the insured amount of $100,000.
      • ldkronos, on 07/17/2008, -0/+6No, I'm pretty sure they don't. Some of them, yes, but most of them are there because they think they are going to lose the $1500 they've saved over the last decade.
  • RandomGorilla, on 07/17/2008, -15/+7Great Depression number 2, here we come!!! Get your most comfortable shoes on, folks, cause those bread lines will be long.
    • DangerCollie, on 07/17/2008, -3/+5Why are people digging you down? Do they really think we can't tip over into the abyss?
    • DaDrake, on 07/17/2008, -1/+2Well for one, unemployment was 20% higher during the great depression. Then you have that small little fact that over 4000 banks in a single day closed, while we have 1 here.

      A great depression is seriously..... seriously... unlikely. Plus, it wouldn't happen in the 1930 economy when the US was isolated and fixated on stopping foreign investors (which, many have argued worsen the problem).
    • gyrfalcon, on 07/17/2008, -3/+1Unfortunately this isn't like the great depression other than it will be used to archive social control that could not otherwise be accomplished. I'm not a conspiracy theorist, but there is a conspiracy.

      This song sums up my feelings pretty well.

      http://www.youtube.com/watch?v=AE7IMHRjbeQ

      Everyone Choose Sides Lyrics by The Wrens

      ...13 grand
      a year in the meadowlands
      bored and rural-poor, lord, at 35, right?
      I'm the best 17 year old ever

      worked these sands
      I won't go back again
      quitter quitter one boy bitter - rough luck
      man to man hand to hand fight 40
      we're losing sand!
      a wrens' ditch battle plan
      record after record black and deckered tack! tack!
      definition: hell and high water
      fatty come a courtin' lord the money!
      everyone choose sides
      the whole to-do of what to do for money
      everyone choose sides
      poorer or not this year and hell's the difference
      everyone sell lies

      everyone choose sides

      let's talk plans
      and luck said, 'double damned'
      were you give women worth winning or what?
      a wasted share of shots at high-tide heaven'
      greener grasses fade from where you wind up
      everyone choose sides
      I'm back! I'm back! So sing to raise the blind up
      I've walked away from more than you imagine and I sleep just fine
      we fought and brought up more - the shovels high up
      on the 10-ton line
  • punkcat, on 07/17/2008, -1/+13If only IndyMac had hired Jimmy Stewart, he could helped that building and loan.
    • mnky9800n, on 07/17/2008, -2/+1They don't have those anymore remember? I think John McCain had something to do with it. . .
  • Lunarbunny, on 07/17/2008, -0/+21From what I heard, bank runs made the Great Depression *worse*. I'm no economist so I can't vouch for this but still. Isn't the point of the FDIC to prevent bank runs anyway?
    • DaDrake, on 07/17/2008, -0/+6Exactly. Banks do close every year --- usually we are talking about a couple dozen small ones and almost always it followed by investigations of fraud (BTW ... FBI investigating IndyMac now).

      When the bank is small, they come in there at night --- open everything --- and then say the bank is closed for a "gas leak" or some other random ***** (which nobody believes because you have 30-40 people all wearing suits going inside a bank). Eitherway, before anyone actually knows what happens... the situation is over and there is no panic.

      With IndyMac, it is a large bank so doing that won't work. Instead, they thought it would be best to give people the weekend to calm down and realize the VAST majority of people are at no risk. If you have less then 100k (or 250k in IRA), you have no risk (plus your going to get 50% back of what you lost). The people who are making a scene are really people who don't understand the market, economics, or the role of the FDIC. The reason why fears continue is because it takes TIME to process that many people.
  • rumblestrut, on 07/17/2008, -4/+21Actually, we'd all be better off if people would stop panicking and just leave their money in the bank. Fear is the mindkiller.
  • selmer, on 07/17/2008, -5/+17Soooo......police try and stop people from being violent, and they are the problem? I empathize with the people, and probably wouldn't be able to hold my wad if I was an IndyJack customer either, but its not the police that is the problem. It is INDYMAC and the rest of the sonafabitch mortgage industry who preyed on people to get cheap, ARMs out to those who didn't fully understand what was going on, and it is those guys who are the assholes and deserve to get buttrammed with pineapples.
  • Lavarock, on 07/17/2008, -5/+7Sounds to me like they were threatening IndyMac customers who were acting out and causing trouble.
  • Eggzb, on 07/17/2008, -4/+9First big hill on the coaster, everyone put your hands up. It's a mean ride too.
  • Tyrghast, on 07/17/2008, -4/+7WTB sources! The Daily Mail is a tabloid, I'd like to see something more credible reporting an incident like this...
    • poiuytrewq44, on 07/17/2008, -0/+1daily NEWS not Daily mail.
    • richmomz, on 07/17/2008, -0/+1It's all over the web this is just one of many sources.
  • DeFex, on 07/17/2008, -4/+4I wonder who would put their money in a place called "indymac"
    • PopcornDave, on 07/17/2008, -2/+2Somebody who thinks they were getting a Big Mac for opening an account?
    • Roryking, on 07/17/2008, -0/+1IndyMac: Raise your Expectations (R)

      Really, they had to leave that on their page?
  • pcpimpster, on 07/17/2008, -2/+6The problem I have with this is most of those people in the lines are covered by the feds.
    Have you seen those lines -- yeah right... you have 100K+ in the bank....? doubt it.
    • aphexcoil, on 07/17/2008, -1/+1I have over 100k+ in the bank ...

      ... in pennies

  • davidwasman, on 07/17/2008, -9/+5And people wonder why I do not have a bank account.
    • pHreaksYcle, on 07/17/2008, -2/+7I don't. You're a loser.
    • whorunbartertwn, on 07/17/2008, -2/+2Well my first guess would NOT be that you have over $100k so are concerned about losing some of it being over the FDIC cap... so I'd go with pHreaksYcle's theory.
    • 10scott10, on 07/17/2008, -2/+2and this is why i'm gonna rob your house tonight.
  • hokie47, on 07/17/2008, -5/+6People need to turn off Glen Beck and realize the world is not going to end. Are times great, no, but will things look like some Road Warrior movie no.
  • scootinger, on 07/17/2008, -0/+9I think it's quite silly that all of this is happening. My guess is that the vast majority of these people were under the FDIC-insured limit of $100,000 so their money is completely safe...there should be no rush at all for them to get to the bank to take their money out. From what I hear, everything (ie checks, ATM cards, etc) is working as usual.

    Maybe all of these people are just uninformed?
    • DaDrake, on 07/17/2008, -0/+4The problem is two fold. First, you will be surprise at the number of people who have no concept at how the market works. When things don't go well to their preconcieve notions, they start to panic. Its always amusing to see people scream "the sky is falling" during a recession, not knowing you should expect one every 8-9 years.

      Secondly, this is a larger bank and it takes time to process these people. Usually you have dozens of closures per year but they are small banks and the FDIC can deal with them before anyone notices this. Because people have to wait, it creates panic.
  • RationalXubrnce, on 07/17/2008, -8/+8 This is a huge story, a watershed moment in modern American history. It's the first time in my life people have lost their money due to bank failure. That's why our independent and much vaunted free press will be all over this story showing the images of police removing angry customers. Right?
    • PolishLogic, on 07/17/2008, -1/+7You weren't alive in the 80's?
    • raybury, on 07/17/2008, -1/+6Or the 70's? THOUSANDS of banks failed during the Carter era.
      • RationalXubrnce, on 07/17/2008, -2/+2 I don't ever remember people actually losing their money though do you? This is the first time I can ever recall people being told, "Sorry you're over the hundred grand limit, go F yourself" If that ever happened before I'm not aware of it. Do you know that it did in fact happen?
      • raybury, on 07/18/2008, -0/+1RationalXubrnce, two things:

        The $100k limit is well-known, I see it reiterated on signs every time I go into a bank and especially at the drive-thru. While the limit is said to be "per depositor," it is easily hedged with joint accounts and accounts at more than one bank. I have little sympathy for someone with more than a hundred thousand dollars yet no sense.

        No one over the limit has lost anything yet at IndyMac. They've been told they will definitely be covered to 150% of the limit, and the rest may be recovered depending on how much the company is sold for. One thing that helps determine the value of a bank is its level of deposits. Those who are over the limit would be best served if they, and everyone else, keeps their money in the bank. Post-takeover bank runs are irrational.

        I'm having a hard time finding info on the S&L crisis and other failures of insured institutions -- the FDIC pushes the line that not a single penny of insured deposits have ever been lost, which makes me think that some deposits over the insurance limites may have been. Possibly something for an economist to study: Does the transparency of the insurance premium affect the degree to which people make sure they have enough insurance?
    • Graeleight, on 07/17/2008, -0/+5First. No, unless you are only a couple of months old it is not the first time in your life that people have lost their money due to bank failure. There are usually a few every year and during the 80s (the S&L crisis) there were hundreds a year. IndyMac was just a very very big one. It was also not a typical bank since it specialized in high risk mortgages.

      Second. Generally speaking watershed moments in American history are not marked by how they affect you personally.
      • RationalXubrnce, on 07/17/2008, -2/+1 Hundreds of times a year in during the 80's banks failed where regular people lost their money? And I'm not talking about investors in on the scamming I mean Joe public. I just can't wrap my mind around that, are you sure the regular average people who had money in savings accounts lost their cash or are you just assuming? I've never heard of it happening. It tried to google but the only results were for Indymac, if you're able to find an instance please post it. If it happens so often it makes you wonder why anyone would trust a bank with that kind of money.
      • ldkronos, on 07/17/2008, -0/+2Here's a list of banks that have failed in this decade:
        http://www.fdic.gov/bank/individual/failed/banklis ...

        People with funds in excess of the FDIC insured limit ($100k, $200k, or $250k, depending on account type) typically lose part of those excesses. The FDIC usually goes above and beyond their insured limit by covering those excess funds in part. If you have $150k in a $100k insured account, you may get back 50% of the $50k excess (actual percentage varies on a case by case basis).
    • whorunbartertwn, on 07/17/2008, -1/+2Hmm a watershed moment based on being naive about how often this happens and manufacturing information about police removing anyone.
  • cdigioia, on 07/17/2008, -1/+7"Its their own fault for having over 100,000 US dollars in one bank. I don't feel sorry for them at all, that was just plain stupid."

    My thoughts exactly - before we get Orwellian about this. What should the police have done, let them try to break into the building and yell at whatever employee is still working? Or do god knows what violence to them?

    The people in the crowd who had less than 100,000 had no reason to be outside the bank, the FDIC is going to give them new accounts at a different bank with their money. The people who had over 100,000, were for the most part idiots, and storming the bank building isn't going to change the situation.
  • Maevirko69, on 07/17/2008, -2/+4JOHN TITOR WAS RIGHT
    • sockpuppets, on 07/17/2008, -1/+8IN THE FUTURE THERE ARE NO CAPS LOCK KEYS.
  • BenLinus, on 07/17/2008, -4/+6Articles like this are garbage. The police are only doing their jobs. The title is very misleading, and only stated as such to flame more police hate. Yes, what happened is terrible. That in itself is a crime. But focus on the fact that the fed/bank messed up, and how THEY aren't letting the people withdraw their money.

    Sheez.
    • desotohawk, on 07/17/2008, -0/+1the police work for politicians and bankers. its serve and protect "the state" not people.
  • michelspc, on 07/17/2008, -1/+5"This was just like Katrina only smaller scale."

    I call BS. The people lining up to withdraw money had more than $100,000 per account. The victims of Katrina were left with little or nothing. The "victims" of this story have at least $100,000. If you had less than $100,000 in your account your money is safe. You may not want to keep your money there but your money is safe.

    The responsibility for the safety of your money is with you. If you decide to keep more than $100,000 per account then you are taking a risk but getting a reward (an interest return on your deposit.) If you don't like the risk then do not keep more than $100,000 per account.
    • DaDrake, on 07/17/2008, -0/+2Not to mention, there is a hot line for people who don't want to wait outside and panic like idiots.
      • whorunbartertwn, on 07/17/2008, -0/+0Not to mention, most of the people lining up probably has less than 100k so won't lose anything but the time wasted lining up.
  • kelpee, on 07/17/2008, -2/+4Anyone with over 100k knows that you divide the money up 50 here and 50 there in accounts, gic's, bonds, and you make more money holding realestate and a stock portfolio than letting it sit.

    If you put all your eggs in one basket you're dumb. Make you're money work for you.

    Having said that, it's a smart idea to keep a couple of thousand cash on hand (in a secure place - not my freezer) because if the atm's fail you're screwed.

    The best advice yet is stop listening to the fear mongers. The sky will fall if enough people panic.
    • DaDrake, on 07/17/2008, -0/+6The bank should be safe... but its DAMN easy to split an account up so its FDIC insured. In fact, you can often open different accounts in the same branch that are insured.
      • Anonymous99, on 07/17/2008, -0/+1I always thought it was 100K per customer per bank...meaning if I have two 75K accounts in the same bank (I know...stupid of me to go over 100K, but this is just hypothetical), I could only get 100K if the bank crashed.
  • PolishLogic, on 07/17/2008, -3/+9The lesson here....act civilized. I have no problem with the cops showing up to keep order among an angry mob of people. In fact, I'd sort of expect them to show up and keep order.
  • edwarddouglas, on 07/17/2008, -2/+3Keeping more than 100k at a small bank is plain stupid. you only do that at bank that could never fail. BOA, Citi, Chase. they are too big to fail. government couldnt let it happen because the whole economy would collapse.
    • Skooma714, on 07/17/2008, -0/+2Apparently IndyMac can't fail either
  • bar10dr, on 07/17/2008, -5/+1Worthless without video
  • highps3, on 07/17/2008, -5/+6People have every right to be mad. Spend your life working only to have it all disappear, but dont get upset! Id burn that ***** down!
    • whorunbartertwn, on 07/17/2008, -2/+3Class internet warrior's threat. You've never burned anything down before and never will in the future, and everyone who reads your post knows it.
  • Brassbud, on 07/17/2008, -3/+4The article title is trying to extract some outrage from the situation.

    I, for one, have no problem with police taking control of a situation and making people shut up, get in line and wait their turn.
  • Sawta, on 07/17/2008, -4/+1When I read the headline of this story, I thought that "IndyMac" was a computer company that had refused to refund money to customers who were trying to return Macintosh products for money.
  • julesbond007, on 07/17/2008, -4/+6that's funny...the cops are protecting the real cuplrits...i smell 1984

    customer: i want my money
    bank teller: what money?
    bank teller: someone call security...we're getting robbed
  • dupswapdrop, on 07/17/2008, -4/+2Once you put money in a bank it's their money not your money. But if you ask very nicely they may let you take some of it back, maybe.
  • 223Sniper, on 07/17/2008, -2/+3doesn't really sound like the cops did anything wrong, they were simply maintaining the peace. buried.
  • savagesteve13, on 07/17/2008, -4/+2People finally finding out that banks are NOT government entities, but private corporations. Get pissed off, demand customer service....get arrested.
  • drgkstep, on 07/17/2008, -2/+3This is the beginning of the end, my friends. Hope you have lots of canned goods.
    • desotohawk, on 07/17/2008, -0/+1excellent idea, but others will steal your food if you cant protect it, you need AMMUNITION, GUNS, and food and lots of each. i recommend blankets shoes boots good durable clothing. tangible goods will become the new money.
  • Lateralis1, on 07/17/2008, -0/+2With a name like IndyMac I wouldn't trust them with my money in the first place.
  • boobsbr, on 07/17/2008, -0/+1why is the people's money being taken away in the first place? i haven't been watching the US media lately.
    • DiggGeek24, on 07/17/2008, -0/+1The people's money is NOT being taken away the bank went belly up but the people's money is insured by government.
      • boobsbr, on 07/17/2008, -0/+1oooooh. but it's only insured up to 100 grand? now i got it. ok, tnx mate!
  • BohicaTwentyTwo, on 07/17/2008, -0/+3Bunch of rich white people rioting in the streets? Didn't see that one coming.
  • causeitsme, on 07/17/2008, -0/+1I don't know how many of this was missed on you but IndyMac closed it's main branch three hours early Friday.

    Could you imagine getting off work and heading to the bank to cash or deposit your check and ......... it's closed?
    No forewarning. Your bank has just locked it's doors, won't let you deposit, withdraw, or any other transactions you depend on based on their services.

    Any other business of magnitude, that accepted payment then refused service on a scale like we see here, would be class-action sued to the ends of the earth.

    As far as those criticizing the cops for 'defending' the bank......Cops are cops, where there are hordes of people, there will be cops and some will harass people, some will hopefully help where they can. I would imagine that it would have nice had the local police coordinated with the Feds and make timely notices to the public so they didn't get to spend all that time out there in a big mystery about their money
  •  

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