IndyMac deposits safe, FDIC says

WASHINGTON, July 14 (UPI) -- The U.S. Federal Deposit Insurance Corp. says depositors with accounts at the seized IndyMac Federal Bank FSB have nothing to fear.

"The more than 200,000 customers of IndyMac with deposits of $18 billion are fully protected," the FDIC said in a statement.

Despite the FDIC attempt to reassure depositors, customers lined up early Monday at IndyMac branches in Pasadena, Calif., and elsewhere, intending to withdraw their funds.

Margie Harbottle, 62, of Pasadena told the Los Angeles Times she "thought it was stupid to do a run on the bank" but she wanted to move her money someplace where she said it would be safe and draw interest.

"Even if it's only 3 percent" she said. "Three percent is better than zero."

FDIC employees spoke with people in line at the banks Monday, answering questions and discussing the bank's new policies, the newspaper said. FDIC spokesman David Barr told the Times IndyMac "right now is one of the strongest banks in the country."

Regulators Friday seized control of the lender, a spinoff of Countrywide Financial Corp. with $32 billion in assets.

As conservator, the FDIC created the IndyMac Federal Bank FSB, which would "continue to provide banking services in communities served by the former IndyMac Bank," the statement said.

The statement said the regulator's move was "largely a non-event."

"The banking system in this country remains on a solid footing through the guarantees provided by FDIC insurance," the statement said.