that in this day and age people would have more than the 100k FDIC limit in a single financial institution.
As IndyMAC faces a run on the bank people with 300k are racing to get money somewhere more safe. What were these people thinking? Don't they read the papers?
As for IMB, stocks at 44 cents, down from near 30 dollars one year ago today. They have stopped new loans, and have lost all available capital/credit lines. How does a lending institution keep going when they stop lending? Pop goes another weasel.
http://www.reuters.com/article/marketsNews/idINN0828817520080708?rpc=44&pageNumber=1&virtualBrandChannel=0
It doesn't surprise me any. The damn banks come just short of lying to get it. A few years ago BB&T tried to get me to buy more than 100K of CD's. When I brought up the FDIC limit they said "Oh we're the biggest bank, bla,ba, bla). When I said no again they started "Well BB&T South is a different Corp than BB&T something"...Then I brought up the no guns sign on the front door and they gave up.
Morgan Stanley keeps trying to get me to keep more in our money market "Oh we have the insurance to cover it" ???
Indy Mac is the lender that holds the mortgage on the duplex I made the offer on a while back. It has taken nearly three months for them to not respond to the offer. I think the last thing that happened was they handed the decision off to the Mortgage Insurance Company. Apparently the borrower must have lived in one of the units himself for them to require mortgage insurance.