Here we take a look at some previous bank failures and acquisitions and how they impacted the bank’s customers.
IndyMac Failure & Takeover by the FDIC
On July 12, 2008 (Friday), IndyMac was seized by the FDIC. All non-brokered insured deposit accounts and all assets of IndyMac Bank, F.S.B. were transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), a newly chartered full-service FDIC-insured institution.
Depositors had no access to banking services online and by telephone the following weekend, but could continue to use ATMs, debit cards and checks. Online services, safe deposit boxes, night deposit boxes, wire services, etc. resumed operations the following Sunday.
Automatic direct deposit(s) and/or automatic withdrawal(s) were transferred automatically to IndyMac Federal Bank.
Checks were processed as usual, and all outstanding checks were paid against the depositor’s available insured balance as if no change had occurred. All interest accrued through July 12, 2008 were paid at the same rates.
Those who had a loan with IndyMac Bank, F.S.B. continued to make payments as usual. The terms of loans were not changed, and checks were made payable as usual and sent to the same address.
It was business as usual. Customers didn’t really need to file paperwork to have their accounts insured or transferred.
Washington Mutual Takeover by JPMorgan Chase & Co.
All deposit accounts, which include Checking, Savings, Money Market, CDs, Brokered Accounts and Retirement accounts were transferred to JPMorgan Chase Bank, National Association, Columbus, Ohio (JPMorgan Chase Bank) regardless of the dollar amount. No one lost any money that was deposited in Washington Mutual Bank.
Customers who had an account with Washington Mutual Bank now have an account with JPMorgan Chase Bank.
All mortgages and loans were assumed by JPMorgan Chase Bank. payment amounts and due dates remained the same.
Most Wamu customers were unaffected by the takeover. Wamu customers were able to write checks, use debit cards, use ATM machines, pay bills, access their bank accounts online, and make deposits and withdrawals the next business day as usual with no problem.
Direct Deposits and Social Security checks continued as normal. Those with safe deposit boxes were able to access their boxes as usual.
Many customers didn’t notice a change in their banking experience after the takeover. It was business as usual. The only differences were changes in the letterhead statements and the fact that the Wamu homepage contained the name “JPMorgan Chase.”
Monroe Bank & Trust Acquires All the Deposits of Main Street Bank, Northville, Michigan
Main Street Bank, Northville, Michigan, was closed October 10, 2008 by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.
All depositors of Main Street Bank, including any with deposits in excess of the FDIC's insurance limits, automatically became depositors of Monroe Bank & Trust, and they continued to have uninterrupted access to their money. There was no need for customers to change their banking relationship to retain deposit insurance.
The failed bank's two offices reopened the following Saturday, October 11th, as branches of Monroe Bank & Trust. Over the weekend, customers of Main Street Bank were able to access their money by writing checks or using ATM or debit cards.
Checks drawn on the bank continued to be processed. Loan customers were able to make their payments as usual.
It was business as usual for customers of Main Street Bank, with the difference being that there were now customers of Monroe Bank & Trust.
