From:   $270 million recovered <wishlist173@gmail.com>
Sent time:   Wednesday, October 19, 2011 3:49:55 PM
To:   september17 <september17@googlegroups.com>
Subject:   [september17discuss] "occupy needs to Occupy the radar screen of the FDIC"
 

Visiting from San Francisco, email back to: occupy.fdic@gmail.com

 

I was down at Occupy Wall Street yesterday. This is what I have to

add to the discussion. Please start banking efforts with the

FDIC . . .

 

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

10,000 depositors had their accounts debited by about $250 million.

 

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

group of IndyMac depositors who lost 50% of their "excess" deposited

funds 

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

9500

depositor accounts of all banks taken over after 1-1-2008. During

these

two years the FDIC often told depositors that they themselves were

responsible for

errors in bank paperwork - even though government audits later showed

the FDIC

and OTS having allowed IndyMac to "cook" its books while under their

supervision.

 

Among the pro-consumer requests of depositors to the FDIC 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).

Depositors wanted this on the FDIC's website and for all banks to tell

depositors clearly that these umbrella limits cover their funds.

 

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, Suze Orman, and now mobile phone companies will

need to

alert their users when minutes are running low.

 

3. Additionally, 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 famous new yorker Robert Mnuchin) and morphed IndyMac into

OneWest. 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

pensions.

 

youtube video:  the FDIC restores $270 million 

to 9500 bank depositors via an amendment to Dodd Frank

 

http://www.youtube.com/watch?v=1USv2JfpnH8

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