Just FYI, in the Savings & Loan crisis some years back, the FDIC went after people who had withdrawn their funds early, and put liens on the amounts over $100,000 which had been withdrawn in the previous 90 days before the FDIC takeover. So, if you've got more than $100,000 in any bank accounts, maybe the best advice is to move some into another account no matter how good or bad the bank looks, period.

it because of stuid people like peter cohan writing crap like this that we are in this big of a mess.

peter you are a idiot

Your comments on FDIC insurance is timely. As for myself, as an IndyMac customer who did everything correctly having discussed coverage with the FDIC months ago, the horror that is unfolding is access to the funds. The FDIC has frozen Revocable Living Trust accounts and it appears all Trust accounts, mine is under the $100,000 insurance limit. Appointments to discuss claims with the FDIC are currently being scheduled in August 2008, when you send a claims form and your trust documentation. Yes, you most likely are insured up to $100,000 but it will be months not days before you get access to your funds following many days of effort. The anguish I heard from the elderly inside the doors of IndyMac is truly frightening. They did everything correctly but are being victimized by the FDIC. I think its a PR nightmare for the credibility of the FDIC. I've notice a spew of articles touting the safety of the FDIC Insured accounts. I have NOT read one written by an IndyMac customer in a futile tug of war for their own insured monies. It would make an incredible story to report what was is transpiring behind closed doors. I believe it would frighten, horrify and anger every American that had ever heard an FDIC statement of insurance protection. I have already seen people rushing to other banks to change the ownership category out of a trust or withdraw funds. The only really smart bank customers were the ones that withdrew funds prior to the FDIC closure. The only difference in sitting in a failed bank today with FDIC insurance and during the depression era, is the date 1932 vs 2008..…you still don't have access to your money even if it is insured.

I had a rude awaking with my current dealings with the FDIC. I will get my money, not in a timely fashion, but eventually. In speaking with others many had a distrust and believed the FDIC would fail to meet their commitments. This is currently playing out with many IndyMac deposit customers.

Best to park your cash in Government CD's for now and keep rolling them when due.

So if this trend goes to other banks, what are we to do with our money? Close our accounts and just go back to check cashing? Risking the check getting lost in mail? I forget the guys name, I do know his first name was Timothy. His belief about the Federal Government was correct. It is just a shame he went about the wrong way to prove his point years ago when he bombed the Government building. He knew FDIC or whatever was doing something wrong, with his intelligence, however, he could have possible warned the American people what we were in for before it got this bad?
Heck, all I know at this point Backed, insured, or whatever by the FDIC I don't trust them at all!!!!! I wish the Americans could understand and see what is really happening. Now the Swiss Banks won't do business with Americans!!!! That stinks.
God Bless

Yes, Federally insured Banks are insured up to $100,000., but the Federal government does not promise when you will get the money, in a severe banking crisis, watch for the Federal government to issue a kind of bond for your 100 grand, i.e., restrictions, for example, to get at only $10,000 per year for ten years, or some variation thereof, you might be able to trade this "bond" on the secondary market for a substantial discount.

Banks are required to hold under 5% of your money in cash reserve. The rest is loaned out. The FDIC will cover the insured deposits over time as loans are paid back. There simply is not the cash available now. That is why the bank could not function. The bad loans (losses) took away profits, operating capital, and much of the reserve.

I had heard the rumors about not getting access to your money for an undetermined time-frame BUT you will never hear it stated by the FDIC. Their line has always been 2-3 business days. As an IndyMac Bank (Failed July 11, 2008), although all my funds are insured, it will take months to get releases of the holds placed on funds by the FDIC. For Trusts it becomes YOUR responsibily to prove your parents are your parents, kids are yours or brothers and sisters, by filing Claim Forms with the FDIC. The FDIC Agent at my local branch told the tearful customers the FDIC is overwhelmed and frankly has made mistakes on holding funds. The numbers for the phone and fax for sending documention are overwhelmed. Appointments just to speak to a claims agent are a month away. Its incredible that the FDIC has allowed such a fiasco to occur without comment. It has shaken the faith in the system (FDIC Insurance) to the core for the American public.