Wednesday, July 16, 2008

Scenes From the Mortgage Crisis, Part Next

From the Los Angeles Times:
"The Federal Deposit Insurance Corp. took over Pasadena-based IndyMac late
Friday and has assured depositors that accounts with $100,000 held in a single
name or $250,000 in a retirement account are safe.But many customers have said
that when they checked their balances online, tens of thousands of dollars
appeared to be missing. And when they went to branches in search of answers,
they encountered lines hundreds of people deep and unhelpful staff members. On
Tuesday, reports of unruly crowds brought police to branches in Encino and
Northridge, although there were no arrests or injuries.Noelle Gabay of
Northridge, a budget analyst for the state of California, said FDIC officials
acknowledged that she was owed $213,500 but provided her access only to $99,000.
"My trust in the FDIC is gone," said Gabay, 49. "The question is now, where do
we put our money? Do we buy a bigger mattress?""

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