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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38897
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I am in the process of suing FDIC for the uninsured deposit

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I am in the process of suing FDIC for the uninsured deposit part of my money ( per FDIC) i lost when IndyMac bank failed. I have a meeting with an assigned mediator this coming thursday, the 10th of September. I have an single account with a beneficiary (my sister) in the amount of $147,000 but was only able to get 50% of this insured by FDIC and got about 50% the rest of the uninsured back and has remaining $37,000 which I am trying to get back from FDIC/IndyMac Bank. I had two other joint accounts with my husband in the same bank with one of the accounts having my sister as beneficiary as well. As a result, only 50% of the account was insured. I am to submit a settlement paper by 09/07. I need help to get my remaining hard earned $37,000 back. please help!!!

If the bank failed prior to October 3, 2008, then you can't claim $250,000 coverage (12 CFR sec 330.1(n)).


That said, the only argument that would seem to fit the facts would be that the federal government has demonstrated administrative negligence, in its general management of the investment banking community, and "but for" that negligence your banking instution would not have failed. The most pervasive example of this negligence is the SEC's almost categorical failure to investigate claims by various sources into Madoff Investments. While this does not show a direct link to the failure of IndyMac, the SEC undoubtely failed similarly to regulate deriviative trading in mortgage securities, and that failure should be imputed to the Dept. of Treasury, which controls both the SEC and FDIC.


This is more than a policy failure. It shows that investigaton simply did not occur, regardless of the government's general mandate to regulate the investment and banking community.


What I'm getting at here is trying to make this a much bigger deal. Government is immune from making stupid policy decisions, but not from the failure to actually do what policy instructs. So, if you can show an endemic failure to regulate what the government was required by Congress to regulate, then you have a huge negligence action against the government that cannot be avoided under the doctrine of sovereign immunity.


This would also be extremely scary to government regulators, and they might just pay you to shut up and go away.


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