By Xin LuLast week I wrote that ailing banks usually give the highest interest rates and mentioned the troubles of IndyMac.  Last Friday, the FDIC has officially named IndyMac a failed bank and took control of its assets.  With more than $30 billion in assets, the IndyMac Bank failure is the largest bank failure since the 1980s. So what is a customer supposed to do in such a situation?
If you have deposits under $100,000 at an FDIC insured bank and the bank fails, then you generally do not have to worry that much.  In the case of IndyMac, customers were able to successfully withdraw and transfer their insured deposits today.
When you have uninsured deposits at a failed bank such as this retired teacher who deposited $360,000 into IndyMac because he was attracted by the high interest rates, then the claim process may be a little bit more hairy.  In the case of the IndyMac situation the FDIC is allowing a 50% advance on uninsured deposits.  This means that you can withdraw 50% of the deposits beyond the $100,000 FDIC limit.  The rest of the money will be paid to depositors after the FDIC liquidates a failed bank.  Generally …

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