IndyMac Bank, the largest bank in California ever to be taken over by regulators, will reopen on Monday as IndyMac Federal Bank, and will be "as safe and sound a bank as any in the country," the bank's new CEO said Sunday.
IndyMac, which was already in trouble because of sub-prime mortgages it had with people who have a poor or no credit history, was shut down Friday by federal regulators following a run on the bank's deposits.
The federal Office of Thrift Supervision reported that 1.9 billion dollars in consumer deposits were withdrawn.
The bank's new CEO, Federal Deposit Insurance Corp. (FDIC) executive John Bovenzi, was in Pasadena, Los Angeles, Monday to try to reassure jittery bank customers, stockholders and the financial markets that the bank is sound.
"Come Monday morning it will be business as usual," he said, adding that all 33 branches will be open.
He said the FDIC's role is to get the bank on solid financial footing, then sell it back to the private sector.
"Customers should just view this as a change in ownership," he said. "I want to emphasize that customers should know that their insured money is safe."
Accounts with up to 100,000 U.S. dollars, as well as joint accounts up to 200,000 dollars and individual retirement accounts up to 250,000 dollars are fully insured by the FDIC.
For IndyMac, some 265,000 customers with 18 billion dollars in deposits are fully insured. However, about 10,000 customers with deposits totaling 1 billion dollars are not fully insured.
"It's important to keep in mind the small percentage of uninsured are still covered for insured amounts and will have immediate access to 50 percent of their uninsured balances," Bovenzi said.
Although the bank was closed over the weekend, customers still had access to their funds via ATMs, debit cards and conventional checks, he said.
"If you want to withdraw money, you can do that at any time," Bovenzi said. "We'll also be open for people who want to put money in the bank. This will be as safe and sound a bank as any in the country."
IndyMac is the second largest bank ever to be taken over by the FDIC behind the 1984 takeover of Continental Illinois Bank.
Source:Xinhua
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