When does “enough” become ENOUGH?
Hey everyone. I did attempt to record this but I’m just really bad on camera, sorry.
Today the House Rules Committee met to consider an amendment that is being called a consumer protection bill. If passed it will increase FDIC insurance to $250,000 retroactive to July 11, 2008.
On that date about 10,000 people watch a portion of their money disappear from Pasadena based IndyMac Bank as the Federal Deposit Insurance Corp. seized the failed financial institution.
This legislation is the only chance for IndyMac depositors to recover any part of the money they lost up to $250,000. The amendment was proposed by Rep. Jane Harman, D-El Segundo and was introduced earlier today by Rep. David Dreier, R-San Dimas. This was the third largest bank failure in history and cost the FDIC about $11 billion.
At the time depositors accounts were insured by the FDIC up to $100,000. The FDIC has also payed back an additional 50 cents on every dollar. If passed all retroactive insurance would be drawn from the Emergency Economic Stabilization Fund — The $780 billion dollar stimulus package approved just last year to bail out the financial services industry.
I would love to see these people get ever penny they lost back, however, I feel we should be approaching this in a much more practical manner. 10,000 people are estimated to have lost somewhere around 270 million dollars. Rep. Dreier feels it’s a matter of fairness since there were so many people who were able to insure up to $250,000 on each account, I disagree. When IndyMac failed and was seized on July 11, 2008 the money in each of those accounts was insured up to $100,000 by the FDIC. Realizing we may be headed toward a second Great Depression a few weeks later congress boosted the amount to $250,000.
Every one of those 10,000 people knew how much the FDIC would insure each account for, if they didn’t then they were just lazy. Plain and simple, that’s probably something worth looking into. I’m sorry if I offend anyone but you just cant fix stupid, for a while you couldn’t even turn on the news with out someone chiming in every ten minutes to remind you how much your accounts were insured for and warn you of the impending financial turmoil which seemed to become exponentially worse each day if not every hour.
Maybe I’m just a heartless person but it makes absolutely no sense to me at all why these people think they’re entitled to anymore than they were insured for, especially having already received an additional 50 cents for every dollar.
I guess the only reason I’m against this bill at all is because I just don’t make that much money. These people want money that is no longer theirs. Maybe people forget where the government gets their money from, or maybe they’re hoping one of our representatives will stand up, pull out his check book and say, “I got this one.” I agree it’s a wonderful thought, but I don’t think it’s fair to force more debt onto each working American citizen because of this massive consumer dereliction. Again, their accounts were insured up to $100,000 not $250,000. Even though three weeks later everybody else’s was it does not change the fact of the matter. You all know how i feel, leave me a comment and let me know what you think. Have a great week.
As one of those “lazy people” I would like to point out that I was called by IndyMac employees and told that with new regulations I would be covered to $250,000. When I went in, I confirmed with both a new accounts rep AND a branch manager and AGAIN was told I would be protected with NEW structures in banking to $250,000 with naming my son on accounts. Only after the run caused by Barney Frank-the bank was not on any watch lists-did I find out that they were not insured. The simple rule is 100,000 per name-NOT! The bank could not even find my signiture card-the way FDIC proves how account was set up. It has since been proven that the banking oversight was asleep at the wheel. The only bank to be affected and not purchased in whole was IndyMac. The bank was later sold to an investor who made major contributions to politicians. Even if half of the loans were in default the bank still would have remained profitable over the course of the loans. Smells fishy when you sell a bank with hard assets for pennies on the dollar to someone who pays thousands of dollars to have rubber chicken with you. Washington DC is corrupt and this deal proves it once again. The old IndyMac is profitable with a new name and no other changes. Hmmmm
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You are missing one crucial point, FRAUD. I definitely support Rep-Dreier that it is only fair to include the Indymac victims and retroactively apply the $250,000 insurance coverage to make most of the depositors whole. These people want to fight to get back money that was wrongfully taken. There were many bank employees that did not understand the FDIC coverage and provided the wrong information. But the most important factor is that there was undeniable fraud going on and the regulators allowed the bank to cook it’s books. The depositors should have been first in line to recover losses when the bank was sold for pennies. There are many senior citizens and hard working low/middle class citizens that lost their hard earned money. Please look into the fraud related to Indymac and you will see why these depositors are demanding their hard earned money back.
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Please dont give your views when you dont know the facts. We were told by the bank manager our hard earned money was 100% FDIC insured. When we opened a 2nd account, the manager told us it made no difference whether it was joint or seperate so long as there were 2 different account numbers. Even as far as beneficiaries, we were told we could have the same beneficiaries. We trusted the bank manager – i guess that makes us lazy! It is amazing how envious people can be – just because we have money – so according you – it serves us right to lose it. We want our money that belongs to us. We dont ask for handouts, umemployment, welfare. We earn an honest liviing and we work hard. Unfortunately, we were dealing with a “lazy” , stupid, uninformed bank manager and in the end we got screwed. A lot of the 10,000 people were senior citizens who believe in the American system and trust their banks and the people who work there. You are certainly a heartless person
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