IndyMac Withdrawals Hit $1 Billion This Week

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Depositors have pulled roughly $1 billion from IndyMac Bank since the failed thrift opened Monday under federal control, an FDIC official indicated Thursday.

David Barr, spokesman for the Federal Deposit Insurance Corp., said that during the first three days this week deposit withdrawals were “getting close to being as heavy as it was prior to the closing,” and will “probably be similar” to the recent run though he declined to release specific numbers. Withdrawal activity is subsiding, he added.

The Office of Thrift Supervision previously said customers pulled about $1.3 billion from the bank following the June 26 publication of a letter by New York Democratic Sen. Charles Schumer questioning IndyMac’s financial health.

The thrift office shut down IndyMac July 11 in one of the largest bank failure’s in U.S. history. When the FDIC reopened the thrift as IndyMac Federal Bank FSB this week, nervous depositors waited in line for hours at IndyMac’s 33 Southern California branches to pull their money from the bank.

Regulators said $1 billion of IndyMac’s $19 billion in total deposits was uninsured. The FDIC guarantees all deposits up to $100,000 and most retirement accounts up to $250,000.

Separately, two executives are leaving the company this week. President Richard Wohl was let go Thursday and Rayman Mathoda, chief administrative officer, has resigned effective Friday. The two will be replaced with FDIC employees. It was previously announced that Chief Executive Michael Perry left and was replaced by FDIC Chief Operating Officer John Bovenzi.

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