Here’s a spooky anecdote from Daily Gotham: “Today, my brother saw a crowd at the Duarte [California] IndyMac Bank desperately trying to get their savings out. Many elderly people were claiming that they are being offered dollar for dollar on the first $100,000…after that only fifty cents on the dollar.” And here’s another one from a recent report from the Center for Responsible Lending:

“I would reject a loan and the insanity would begin,” one former underwriter told CRL. “It would go to upper management and the next thing you know it’s going to closing… I’m like, ‘What the Sam Hill? There’s nothing in there to support this loan.’”

Even if, knock on wood, runs on banks aren’t in our near future, is IndyMac’s failure likely to affect Brooklynites directly or indirectly? Or will it indeed be business as usual after the FDIC bailout?
It Begins: My Brother Witnessed a Run on a Bank [Daily Gotham]
Photo by Alec81.