|From:||$270 million recovered <email@example.com>|
|Sent time:||Monday, October 17, 2011 7:28:58 PM|
|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
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
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
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
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
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
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