RisingSun96815 said:elturn said:At the end of the story the local reporter added "to protect your deposits, experts recommend that if you have any joint accounts, you should split them into separate accounts." Just to make clear to everyone reading: That advice is totally bogus.Using whitelephant's advice as a suggestion, it may be good advice anyway.

That may be true of revocable trust accounts, but surely not for joint accounts - there is no need to verify anything with them. I would be interested in hearing from anyone with a regular joint account and between $100k-$200k at Indymac to see if they had a hold placed on it.

maddybeagle said:So what happens with 0% credit card money if a bank fails..I have some floating on a WAMU visa...

You get to keep it. Just like all the people with sub-prime mortgages with IndyMac and who were struggling to make payments or sell their house while covering the mortgage, now get their homes for free!! This is the federal plan to eliminate the housing crisis.

I'm off right now to refinance with Wachovia myself, so I can try to eliminate my mortgage payments once and for all if they go under.

Apparently it's not worth bothering getting your money out of IndyMac because other banks won't accept it. The LA Times reported this morning about one poor sucker who took an IndyMac certified check to WAMU and was told there would be an 8 week hold on the money.

The excuse was that they trust the FDIC-run bank but they need time to make sure the check wasn't forged.

Shandril said:...The article would conclude by the victim swearing that from now on, they'll keep all their money in cash hidden in his/her appartment since the banks can't be trusted with it. Better be safe and not earning a penny of interest than sorry. Ummm...that's what I do right now. Seriously. Not because of failing banks, but because of my ex-wife and the F'ed up child support system here, which seems to believe I owe over $90k in back child support (I don't, and have a judge's order agreeing with me), but they keep seizing my bank account and turning the funds over to my ex-wife. They did it again over the 4th of July weekend; fortunately, I faxed them a copy of the judge's order (signed by the freakin' attorney general, no less) instructing them to NOT do anything like that, and they reversed it and let me have my funds back. But I *still* had to pay my bank a $125 "legal processing fee", which I asked to get back, and the bank still hasn't gotten back to me on it. There's $117 in there now, and tomorrow it'll be $3.

mnsweeps said:glxpass said:jdmetz said:RisingSun96815 said:elturn said:At the end of the story the local reporter added "to protect your deposits, experts recommend that if you have any joint accounts, you should split them into separate accounts." Just to make clear to everyone reading: That advice is totally bogus.Using whitelephant's advice as a suggestion, it may be good advice anyway.

That may be true of revocable trust accounts, but surely not for joint accounts - there is no need to verify anything with them. I would be interested in hearing from anyone with a regular joint account and between $100k-$200k at Indymac to see if they had a hold placed on it.
Per someone I just spoke with at the IndyMac FDIC number 1-866-806-5919, it's necessary to schedule an appointment if you've a joint account with more than $100K and less than or equal to $200K, even though the rep acknowleged that there's no question that said amounts would be fully insured. She also said an appointment wouldn't need to be made for single-owned accounts $100K or less. I don't have an account with IndyMac, so it was just a hypothetical question.

Not true...I have a joint with over $100k and I went to bank to withdraw the money and there was no issues at all..
Wow, the FDIC reps are just like regular bank CSRs: They don't know what they're talking about!

cameron2003 said:jdmetz said:RisingSun96815 said:elturn said:At the end of the story the local reporter added "to protect your deposits, experts recommend that if you have any joint accounts, you should split them into separate accounts." Just to make clear to everyone reading: That advice is totally bogus.Using whitelephant's advice as a suggestion, it may be good advice anyway.

That may be true of revocable trust accounts, but surely not for joint accounts - there is no need to verify anything with them. I would be interested in hearing from anyone with a regular joint account and between $100k-$200k at Indymac to see if they had a hold placed on it.

There have been reports that joint accounts without both signature cards on file are problems.

That makes sense as I could show up at the bank alone, open a joint account, and never return the signature card (or if I'm really smart, sign it myself and mail it back), all without the other person I named even knowing.

FDIC Issues New Deposit Rules for Banks

From WSJ (link to full article) --

The Federal Deposit Insurance Corp., led by Chairman Sheila Bair, on Thursday issued new rules requiring around 160 of the largest banks -- those with at least $2 billion in domestic deposits and either $20 billion in assets or 250,000 deposits accounts -- to adopt new procedures allowing banking regulators to settle existing accounts in the event of a bank failure. ...

The new rules for large banks will require them to standardize the information they provide to the FDIC on deposit accounts, and to put in systems to automatically post possible holds on very large deposit accounts.

Separately, the FDIC also proposed new rules for how it determines the value and nature of claims against a failed bank. The agency said it will consider whether to make automated sweep transactions at banks of all sizes ineligible for deposit insurance. These refer to transactions that move money back and forth among different accounts to capture higher yields.

SUCKISSTAPLES said:mnsweeps said:Not true...I have a joint with over $100k and I went to bank to withdraw the money and there was no issues at all.. I dont understand why people are withdrawing their money AFTER FDIC has taken over. The bank isnt failing again and again and again, unless all the depositors take all their money out.
Sheep?

This question has been brought up .. but nobody has answered it:

Why is this failure going to use any of the FDIC funds? If the bank doesn't have enough assets to cover insured deposits, the FDIC insurance will kick in, but then everyone with $$ over the limit should get exactly $0! Here we are seeing people w/ $$ over the limit getting 50% of their money and possibly more, i.e. FDIC believes the assets will cover all of the insured deposits + more! Why is everyone screaming about this costing FDIC money??

So we have been discussing here how important it is to know your limits, Which i agree with and in most cases follow. But was wondering about thoughts of going over with some banks. Right now BoA is offering a decent rate and for me to make it worthwhile I would have to go well over insured limits. For the most part I'm okay with that since I have always felt if BoA failed we are pretty much screwed anyways. even in the past the Fed has intervened to keep BoA going when they were a smaller bank