This morning I woke up to the news of the failure of IndyMac Bank. One news article said that the assets of the bank were "seized" by the FDIC. Bank depositors have very limited access to their funds over this weekend. They are limited to what they can get through an ATM card. Just think - this would not be the weekend to have the ATM "eat" your bank card.
This is the second largest bank failure in U.S. history. Some 10,000 depositors had funds in IndyMac in excess of the insured limit of $100,000 for a total of $1 BILLION. According to an FDIC statement, funds deposited in IRAs were separately insured up to $250,000.
The failure of IndyMac should serve as a sign for everyone to step back and take a good hard look at the safety of their assets. It has been a long time since the insured limit of $100,000 was set. Many years ago, the $100,000 limit seemed unattainable to many people. Right now, I have many clients who routinely keep a higher balance than that in their checking account. It is not at all unusual for someone to have more than $250,000 in an IRA in this day and age.
The days of the bank failures are pretty much in the distant past in the days of the "Great Depression" in most of our minds. However, with the recent news stories about the struggles of Fannie Mae and Freddie Mac, the collapse of the housing market and now the failure of IndyMac, I think this is a wake up call to all of us.
Please call me if you need some ideas on how to possibly safeguard your money. We can look at your specific individual situation to see what will work for you.
Meet the Author
- Sue Ballmann
- Germantown, Maryland, United States
- I am a native Washingtonian, and I have lived here most of my life. I received a BBA in Accounting from St. Mary's College in Notre Dame, Indiana. After graduation, I passed the CPA exam and earned a Master of Science degree in Taxation from the University of Baltimore. Pax Tax and Consulting Group, Inc. specializes in taxation. Because I look at the BIG PICTURE when approaching client problems, my experience includes mortgages and real estate. I also hold life and health insurance licenses. My professional activities included serving on the Federal Tax Committee for the Maryland Association of CPAs and several nonprofit boards. I was the President of the Germantown Jaycees where I was involved in everything from the Paint a Pumpkin project to running parades. Most recently, I am a graduate of CEO Space in 509, 709 and 1209. I am the CEO of Roman Collar Restaurant Ratings, Inc. where we rate restaurants all around the world and offer high tech business solutions. We are now launching a Global Interactive Assistant (GIA) which will read, answer and file your e-mail for you as you drive down the road. TELEPHONE: 301-908-7002