Quote:
Originally Posted by Conqueror Kang
Hey guys, I'm new here, though I've been following this thread for about 3 weeks or so now.
First off, I tried to use the Search Bank feature on the FDIC site but for some of them, none of their names popped up (I either used the name they had or their FDIC # I think). Just wondering how do you guys verify this?
Second, I found this bank at the side of another blog I visited and recently here as well:
indymacbank.com/
Though it doesn't say it anywhere, this went from 4.00% APY to 3.85% (for the Money Market Savings account), with a $1K minimum. Just wondering what your thoughts are (and againl, while I tried to search in the FDIC site whether this bank is insured, I didn't find it anywhere using its name for in the search field.
Thanks.
Edit: I don't mean to break the rules, but I wanted to know if the site above is real or not, sorry again.
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I do not have link posting privileges yet, but marketwatch recently had an article about FDIC bringing back the regulators that closed down all the failed S&Ls of the 80's & 90's. The cited 2 criteria of a troubled bank, the "Texas ratio" (named after all the oil patch S&Ls that went under) of non-performing/defaulting loans/assets to depository assets (not sure going off memory) and high CD rates. A texas ratio of 100% plus combined w/ high CD rates (the price of capital) = default. Indymac was highlighted as a bank that is on its way to fulfilling these criteria. Texas ratio is 40% (after being in the low single digits just last year) and they have very high interest rates to attract deposits. They were an alt-A mortgage loan specialist so it appears that they will not be around for much longer. I'd steer clear of them (personal opinion).