Not All Banks Accepting FDIC Indymac Bankcorp Check?

Just when you think, it can't get any worse for our financial crisis regarding one of the worst "run on the banks" in history, it is being reported that there are some banks not feeling too confident in our government's FDIC. Some banks are putting as much as 8 week hold on any checks that were issued from the FDIC due to the IndyMac failure.

IndyMac became the largest regulated thrift to fail and the second largest institution to fail in U.S. history. In mid June, IndyMac had seen an acceleration of withdrawals from customers after being made aware of a letter from Senator Charles Schumer to the Federal Deposit Insurance Corp. (FDIC), Office of Thrift Supervision and the Federal Home Loan Bank of San Francisco, saying he was concern about IndyMac Bankcorp's financial deterioration posed a risk to taxpayers and borrowers.

One depositer, Sheryl MacPhee, claimed while trying to deposit her IndyMac check at Washington Mutual (WaMu), they would not accept the check that was insured by the FDIC. The reason was that there was a "new policy" at WaMu. However, if she insisted on depositing it, they would put a hold on the check for 8 weeks. A typical hold on checks can be around 10 business days.

Now, this didn't stop with Washington Mutual. Wells Fargo is putting a hold on IndyMac checks 9 business days. They did say this is their typical hold period on checks from other banks. Yet, remember, these checks are insured by the United States government! Wells Fargo claims it is because they are concern with people creating fraudulent checks.