Originally Posted by Sergeant Stinger1 Heres the proof of the start: In Pasedena today there is a run on the banks with people trying to get their money out but they can ONLY get up to $100,000 after that its ***FIFTY CENTS*** on the dollar and the F.D.I.C. says there are ***NINETY*** similar banks in this situation!!! - People are panicking standing in long lines to get whatever they have in these banks OUT before they go under!!! - HELLO bush, HELLO RECESSION, HELLO DEPRESSION!!! - BYE BYE U.S.A.!!!

Originally Posted by UtahBill Ignorance is lack of knowledge, and that is curable. Stupidity is willful lack of knowledge, also curable, but it takes a lot more effort to get the stupid to acknowledge they need to learn.

Lightdemon,

I believe he is referring to IndyMac, which was taken over by the FDIC on Friday. Only uninsured depositors may not receive full payment for their bank deposits. Right now, the FDIC is planning to provide an advance payment of 50% of uninsured deposits, though that figure could be increased based on how the bank's assets are resolved.

It should be noted that Senator Chuck Schumer's publicizing a letter he wrote to regulators sparked the run on that bank.

News stories following the release of Senator Schumer's worries highlighted the link between his letter and a run by depositors.

For example, the July 1, 2008 edition of the Los Angeles Times reported:

Battling rumors that it may collapse, Pasadena-based IndyMac Bancorp acknowledged Monday that its financial position had deteriorated but described the fears as overblown and said it was working with regulators to improve its "safety and soundness."

IndyMac, a national home lender burned by the mortgage meltdown, went public after depositors lined up at San Gabriel Valley branches starting Friday to pull out their money. Striving to reassure them, the thrift said nearly all their deposits were insured by the Federal Deposit Insurance Corp...

The concerns were triggered by Sen. Charles E. Schumer (D-N.Y.), chairman of the Joint Economic Committee, who said in public letters to the FDIC and other bank regulators Thursday that IndyMac "could face a failure if prescriptive measures are not taken quickly." IndyMac said Monday that Schumer had created the "wrong impression" about the savings and loan's risks.

Source: E. Scott Reckard and Andrea Chang, "IndyMac denies it is near failure," Los Angeles Times, July 1, 2008.

Although I believe Senator Schumer was justified in writing the letters to various bank regulators, he most definitely should not have made their contents public. In doing so, he reinforced depositors' anxiety and precipitated the panic that, at a minimum, hastened IndyMac's failure. All said, I believe Senator Schumer exercised extremely poor judgment in publicly broadcasting his concerns at a time when prevailing marketplace sentiments had created a heightened risk of a run on the bank for which the capital buffer was already very thin.

Originally Posted by donsutherland1 Lightdemon, I believe he is referring to IndyMac, which was taken over by the FDIC on Friday. Only uninsured depositors may not receive full payment for their bank deposits. Right now, the FDIC is planning to provide an advance payment of 50% of uninsured deposits, though that figure could be increased based on how the bank's assets are resolved. It should be noted that Senator Chuck Schumer's publicizing a letter he wrote to regulators sparked the run on that bank. News stories following the release of Senator Schumer's worries highlighted the link between his letter and a run by depositors. For example, the July 1, 2008 edition of the Los Angeles Times reported: Battling rumors that it may collapse, Pasadena-based IndyMac Bancorp acknowledged Monday that its financial position had deteriorated but described the fears as overblown and said it was working with regulators to improve its "safety and soundness." IndyMac, a national home lender burned by the mortgage meltdown, went public after depositors lined up at San Gabriel Valley branches starting Friday to pull out their money. Striving to reassure them, the thrift said nearly all their deposits were insured by the Federal Deposit Insurance Corp... The concerns were triggered by Sen. Charles E. Schumer (D-N.Y.), chairman of the Joint Economic Committee, who said in public letters to the FDIC and other bank regulators Thursday that IndyMac "could face a failure if prescriptive measures are not taken quickly." IndyMac said Monday that Schumer had created the "wrong impression" about the savings and loan's risks. Source: E. Scott Reckard and Andrea Chang, "IndyMac denies it is near failure," Los Angeles Times, July 1, 2008. Although I believe Senator Schumer was justified in writing the letters to various bank regulators, he most definitely should not have made their contents public. In doing so, he reinforced depositors' anxiety and precipitated the panic that, at a minimum, hastened IndyMac's failure. All said, I believe Senator Schumer exercised extremely poor judgment in publicly broadcasting his concerns at a time when prevailing marketplace sentiments had created a heightened risk of a run on the bank for which the capital buffer was already very thin.

Originally Posted by Lightdemon What's gotten people so afraid that they're not even going to trust in the FDIC? Histeria?

Originally Posted by Sergeant Stinger1 Heres the proof of the start: In Pasedena today there is a run on the banks with people trying to get their money out but they can ONLY get up to $100,000 after that its ***FIFTY CENTS*** on the dollar and the F.D.I.C. says there are ***NINETY*** similar banks in this situation!!! - People are panicking standing in long lines to get whatever they have in these banks OUT before they go under!!! - HELLO bush, HELLO RECESSION, HELLO DEPRESSION!!! - BYE BYE U.S.A.!!!

Originally Posted by metreon Also, I want to clarify the FDIC insurance only covers $100,000 per customer within a particular bank, not per account. If you have more than $100,000 you have to distribute the surplus among several different banks, not just make several accounts within the same bank. Is it it realistic to expect that from people?

Originally Posted by Sergeant Stinger1 Heres the proof of the start: In Pasedena today there is a run on the banks with people trying to get their money out but they can ONLY get up to $100,000 after that its ***FIFTY CENTS*** on the dollar and the F.D.I.C. says there are ***NINETY*** similar banks in this situation!!! - People are panicking standing in long lines to get whatever they have in these banks OUT before they go under!!! - HELLO bush, HELLO RECESSION, HELLO DEPRESSION!!! - BYE BYE U.S.A.!!!