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NEWS RELEASE
July 11, 2008
ABA Media Contact: John Hall
(202) 663-5473
E-mail: jhall@aba.com
ABA STATEMENT ON FAILURE OF INDYMAC BANCORP
by Edward L. Yingling, ABA president and CEO
“This is a sad day for IndyMac, but insured depositors should know that their money is safe. The FDIC insurance fund is huge, with more than $52 billion in assets to protect bank depositors. In this year alone, the fund will add an additional $5 billion from assessments on banks and interest earnings.
“It’s important to remember that the banking industry remains highly capitalized and well prepared for economic weakness. As of March, capital in the industry exceeded $1.36 trillion, with an additional $120.9 billion held in reserve as a safeguard against possible losses. Despite the turmoil in financial markets, banks added $13.5 billion to capital in the first quarter, and 99 percent of banks are currently classified by the regulators as ‘well capitalized,’ the highest possible designation.
“Appropriately, the OTS and the FDIC took swift and decisive action to resolve this troubled institution. Doing so helps to protect depositors and minimize the cost to the insurance fund.”
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The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.3 trillion in assets and employ over 2 million men and women.
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