No one said being a conservator would be easy. The Federal Deposit Insurance Corp. is dealing with antsy and angry IndyMac customers and apparently unfriendly banks that are treating IndyMac checks with scorn. It is unclear as to how much money has been taken out of the failed institution, although the long lines outside some IndyMac suggest at least some deposits are leaving.
The FDIC sent out a financial institution letter on July 17 to FDIC-insured banks referring to “reports that some financial institutions are refusing to honor or are placing excessive holds on IndyMac’s official checks as customers attempt to deposit them. The clear message: “Your bank should honor IndyMac’s official checks, such as cashier’s checks, to the same extent your bank honors any other bank’s official checks.”
In response to reports that the FDIC had frozen all foreclosures, FDIC spokesman Andrew Gray says that “foreclosures are being reviewed on a case by case basis.”
Meanwhile, a new FDIC rule covering “large-bank insurance determination goes into effect on August 18. Banks covered by the rule will be required to provide the insurer “with deposit account data in a standard format,” among other streamlining measures. The rule covers those insured banks with domestic assets of at least $2 billion, and either 250,000-plus deposit accounts or total assets greater than $20 billion. The banks have 18 months to comply.