IndyMac Closed by Feds

IndyMac is the latest news-generating failure of the subprime debacle. Regulators shut down the bank late last week, starting a deathwatch on other small banks.

IndyMac is open for "business as usual", under control of the government, but many depositors are jumping ship. Customers lined up as early as 4 AM today to yank their cash. Of course, most customers do not need to do this - the money will still be available via ATMs, checkwriting, and ACH.

This is another reminder to keep your balances below the FDIC insurance limits - especially at a time like this. The regulators have been adding staff with the expectation of more bank failures, so it pays to be vigilant. In the case of IndyMac, the FDIC has made 50% of uninsured (or over-the-limit) assets available to depositors - so some people got lucky.

Have you ever been affected by a bank failure? Tell us about it in the comments.

Further reading:

• How FDIC Insurance Works
• FDIC's Page on IndyMac
• LATimes.com shows IndyMac customers