From:   $270 million recovered <>
Sent time:   Monday, October 17, 2011 7:28:58 PM
To:   september17 <>
Subject:   SPAM-MED: [september17discuss] What the FDIC doesn't do

IndyMac story - from the bank depositors POV:


In July of 2008, IndyMac Bank was taken over by the FDIC.

10,000 depositors, elderly people, small business people, one mother

who lost the insurance funds paid to her for her soldier son's death

in Iraq,

had their accounts debited by about $250 million.

The government's own audits of the FDIC and

OTS later showed that these agencies had failed to do their job

and in fact allowed IndyMac to backdate a key capital infusion

of $18 million from May 2008 to March 2008 to keep the bank off

its watchlist.


Thanks to former representative Jane Harman and the work of a small

group of IndyMac depositors who lost 50% of the deposited funds in

the FDIC's takeover of IndyMac Bank, $270 million was restored to


depositor accounts of all banks taken over after 1-1-2008 in July of


with the addition of an amendment to Dodd Frank.


The depositors' story is at:



Among the pro-consumer requests of depositors were these:

1. that the FDIC and its member banks be required to tell depositors

clearly that all accounts are insured under aggregated, umbrella

limits for all accounts in that category and not each account

separately. (this the FDIC has consistently stonewalled).


2. depositors also wanted the FDIC to use the same "alert" technology

that is used to tell mortgagees who have missed a mortgage payment or

checking account holders to NSF (insufficient funds) in their

accounts to tell depositors if their balances exceeded insured

amounts. This

the FDIC also refused to do, though it was a request made early on by

their poster girl, Suzie Orman, and a similar law was put into effect


10-18-2011 so that cell phone companies need to advise users when


mobile minutes are about to exceed their pre-paid programs.


3. also, the Senate and House whose audits pilloried the OTS and FDIC

both for allowing IndyMac to backdate an $18 million capital infusion

from May to March of 2008 among other lapses in supervisory behavior

 specified in Dodd Frank the "no re-hire" of OTS employees into the

new Consumer Financial

Protection Bureau.


Amazingly, the former OTS deputy regional director (who worked with

FIRED regional director Darrell Dochow) was now appointed to head the

new CFPB in the west. Let us ask: Who is Edwin Chow? And he is not

alone as an implementation memo added to Dodd Frank appears to

expedite the re-hire of OTS personnel into the new agency.


Now what has happened to IndyMac Bank?


In what was originally called

a "sweetheart deal," the FDIC auctioned the remains of IndyMac Bank

to a group of ex-goldman sachs investors: john paulson, steve mnuchin

(son of a famous new yorker Robert Mnuchin) and morphed IndyMac into



This "new" bank has reaped more than $2.6 billion in

retained earnings since the formation of the "new" IndyMac bank as One

West in

December of 2008.



Many thousands of dollars were paid in bonuses to FDIC and OTS

personnel, some of whom were "released" but retained their full