Losing Faith in the Banking System
6:30 AM July 15, 2008
(Encino) -- It's another day of waiting in the hot sun for Indymac Bank customers.
Theyr'e setting up lawn chairs on the sidewalk. They've brought books and coolers with ice and drinks. They know they could be here for hours, just like they were yesterday.
The bank failed on Friday. It's now under federal control. And federal regulators are allowing accountholders to withdraw money that's insured by the FDIC (usually up to $100,000 per individual account).
However, to get your money, you have to get inside the bank. And employees at most branches are only letting five or ten people in at a time.
When your life savings is tied up in a bank that's gone belly up, you're willing to wait a long time if there's hope you can get some of it back.
That's what Russell Arjoon tells me. He stood outside this branch for 7 hours yesterday, then left when the bank closed its doors.
Arjoon tells me that if he manages to withdraw his money, he's not quite sure where to put it.
"Unless you keep it under your mattress, with a gun in your hand," he tells me.
In Washington, federal regulators are trying to reassure the public about our banking system. But on every newscast, there are pictures of people standing outside banks, waiting to get their money.
To many, the pictures are overpowering the words.
Posted by Eric Spillman | Permalink | Comments (17) | TrackBack (0)
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sue,
could you explain to me how senator schumer's comment caused the bank to make all those questionable loans that finally caught up with them?
Posted by: howardx | July 16, 2008 at 03:40 PM
Interesting that the FBI is now investigating IndyMac for fraud; maybe Mozilo will get his day in court. I hope so, for the sake of those who may have lost money thru IndyMac or Countrywide.
Posted by: Idaho | July 16, 2008 at 12:21 PM
this is fact..... the money in your pocket
is on loan to you.... it is not yours.... think of it as a binary code... ones and zeros... The FDIC is kin to FEMA and all
the other smoke and mirrors brought forth to placate you ... running on the banks to get your money is futile... for there is no amount that can be brought
forward that fast for all to receive... we are the sleeping giant... and we had better arise and awake soon...
for we have been asleep for a long time.... this country belong to us all..
Think, it ain't illegal ... yet...
lamesabassman..... money's too tight to mention....
Posted by: lamesabassman | July 16, 2008 at 08:23 AM
RE: Indymac - Has anyone tried to explain to people with deposits less than $100,000 that if they withdraw their money and put it into another bank it will be covered by the SAME FDIC insurance? why would anyone that understood that stand in line?
Posted by: Gerry Pepper | July 15, 2008 at 10:34 PM
This morning's comments by Mark and describing his experience with Indy Mac over the weekend and not having the ability to get his money out, were far from creating hysteria -as Gail commented. Gail's comments describing her personal experience in Houston -too many years ago to remember are far from relevent to this current situation! One very important factor, Gail should consider -is the U.S. Dollar was not in the extremely poor condition overseas, as it is in today's market. Therefore, her comments and criticism of Mark were inappropriate. Adding insult to injury, Michaella agreed with her! Ladies, get your facts straight BEFORE, you make us all look like fools...
Posted by: Cheryl in Fullerton | July 15, 2008 at 01:27 PM
Eric I did not watch the IPhone story yet because i've been busy, but people waiting in line to buy a phone that does everything is nuts because in six months to a year there will probably be a new and improved IPhone out there. Eric when that happens get someone else to take your place so they can get booed and you can have the day off.
I did watch your report on Indymac bank and from what I saw any anger from customers is the fault of the bank and not you. Mark if you're not getting answers from the bank then you have a right to express your feelings and concerns on air and don't let anyone tell you differently.
Posted by: Anonymous | July 15, 2008 at 01:19 PM
FIRST off people need to lighten up about the question that was asked to the man about if he had ever seen a naked girl PULEEEZE lighten up the damn segment was about a DAMN phone. It's not like Eric went to this person's house and asked the question. I think you did a great job Eric people need to take the stick out of there you know what's. You have a supporter here. I think if the man had just answered the question people blew this out of porportion and I am sorry people emailed you with some stupid comments. Anyways you and Mark tell it like it is!
Back to this bank situation it is really sad. Then the idiot president gets on the news and lets us know there is not need to worry everything will be fine and is ok. WTF is he not seeing what we are all seeing. You reported wonderfully this morning and no you were not instigating fights just wanted the people to let out there fustrations. I think that if i had over $100.000 in that bank I would be pissed off!!!!
Eric don't let the idiots on here bring you down you keep being you.
And if you don't like the ways Eric or Mark report things CHANGE THE CHANNEL!!!
Posted by: Lupe In Fullerton | July 15, 2008 at 11:10 AM
Eric, have you lost your mind or what?????.. how dare you ask personal information on live tv. Especially to ask how people are taking their money from a bank. That is none of yours or anyones bussiness. You are putting people at risk of robbery and or harm when you do that. It is your job to report only the news, not ask that kind of info..
If anyone is robbed or injured by your comments you should be held responsible along with KTLA management..
Both you and Mark have made some stupid comments this week and should be on a short leash and by that you should be sensored before they broadcast your comments
Start thinking before you speak, both of you...
Posted by: ernie | July 15, 2008 at 10:50 AM
Should we really trust the government (politician) after all the lies that our money will be safe?
Posted by: Nate Green | July 15, 2008 at 09:21 AM
It's too bad there's probably no legal process to get reimbursement or compensation from Angelo Mozilo, who started Countrywide AND IndyMac.
According to various news stories, he cashed out millions in stock options; he was probably laughing all the way to his bank (but it will have been a different bank).
Posted by: Idaho | July 15, 2008 at 09:05 AM
I am glad that KTLA and other news media picked up on the D-Senators letter was the cause of this rush on the bank. I agree with the woman who said she believed it was political. How was he warning people? He just put a lot more people out of work! Keep up the good work KTLA!
Posted by: Sue | July 15, 2008 at 08:56 AM
I was watching the morning news today was very upset to see eric Spielman in an attempt to staet a fit between the people standing in line at the Indy bank. he was covering the news he was trying to insite a fight. He needs to be careful how he reports and not try to make the news!
Posted by: Ron | July 15, 2008 at 08:37 AM
It's very disturbing indeed.
Posted by: Melanie | July 15, 2008 at 08:37 AM
Those in line bring back the memories of Lincoln Savings with many being older depositors. The difference this time is that there was ample warning in late June from Senator Schumer. It is strange that so many people did not pull their money out with this advance warning.
Posted by: Leigh | July 15, 2008 at 08:31 AM
But do we know if any of those people outside have seen a woman naked?
Posted by: sfmag | July 15, 2008 at 08:14 AM
That woman who said one of the FDIC big-wigs should "get off his a**" and come down there has it right! The people affected have such frustration and it sounds like bank representatives are showing very poor service skills not to mention compassion.
I hope you also clarify the list v. no list question that arose.
Posted by: Idaho | July 15, 2008 at 07:59 AM
We're living in strange times. Same city. Same week. Two lines with two agendas that couldn't be further apart - the IPhone vs. IDon't-wanna-lose-my-life's-savings. Engenders sobering thoughts that remind us we're living under a precarious economic umbrella.
Posted by: jozielee | July 15, 2008 at 07:19 AM