Police Tame Angry Line Of Bank Clients

Customers Wait Long Hours To Remove Money From IndyMac Bank In Calif.

(CBS/ AP)  Police were called Tuesday to tame an angry crowd of IndyMac Bank customers trying to pull money from their accounts on Day 2 of a federal bank takeover.

At least three police squad cars showed up as tension mounted outside a branch in suburban Encino. Customers were warned against becoming unruly but no arrests were reported

"I've already lost three nights of sleep and three days of eating, now I'm done," customer Joan Rubin said as she sat in a beach chair on the sidewalk, waiting for her turn to empty her account.

"It's a very sad day in America," she said.

Rubin, 52, said she was drawn to IndyMac Bank about 18 months ago by high, well-advertised interest rates and friendly service close to home.

Federal regulators seized IndyMac on Friday. It was reopened Monday under the control of the Federal Deposit Insurance Corp. Deposits to $100,000 are fully insured by the FDIC.

In the 11 business days before the FDIC takeover, frustrated depositors withdrew more than $1.3 billion from IndyMac, reports CBS News correspondent Bill Whitaker.

Worried customers began lining up before dawn Monday outside IndyMac offices in Pasadena and other areas. Makeshift tents were erected outside the Pasadena office after an older woman passed out under the hot sun.

At closing time, FDIC employees took the names of remaining customers in Encino and told them to return on Tuesday.

Customers began lining up at 1:30 a.m. Tensions escalated later, when people on the list got priority over those in line. Five people at a time were allowed to enter the branch.

Customers became infuriated, and police told them to behave or face arrest. Officers stood by at some other branches around Southern California, but there were no reports of problems.

Like all customers with deposits above the federally insured limit, $100,000 dollars, small businessman Don Hinojosa's account was frozen. He was hot.

"I have mortgage payments due, I have car payments due," Hinojosa told CBS News. "How am I going to make those payments?"

Lisa Hester Lerner got in line when she found everything above the insured limit had disappeared from her online account.

"I think it is mass hysteria and similar to the Great Depression," she said.

IndyMac has 33 retail branches, all in Southern California.

Ruben and Rosalie Uranga were also among the hundreds of people who waited in line for hours Monday in Pasadena. Ruben Uranga, a former construction worker, has Parkinson's disease.

The retired couple said they chose to deposit the money they made from selling a home because of IndyMac's advertised high interest rate.

They invested less than $100,000 - an amount that is fully insured - but didn't want to take a chance of leaving it in the failed bank.

"Even if it's the government running the bank now, something could happen. Why take a chance?" Rosalie Uranga said.

[deacon20081]

The FDIC just had to dole out 25% of it''s reserves on just ONE BANK in California. More banks are in trouble.........Get the picture yet?

[barbaram99]

Keithle,ye are so right, I am 53. I never had children. It was so hard to find a Dr to fix my tubes. I have health issues. I did get it done years age. Yer singing to the chior there, There is too many babies and may be THIS nation go to a system where they have 2 children max. I am for english as our tough. Girls know what that period means. There mums have them trained for it. I got so pissed at my teachers/foster parents,,all they cared about babies. I dold them no children for me and I still got the dumb girl schooling.

[barbaram99]

I knew a blind guy and he told me *I don''t trust banks* and he doesn''t. I don''t really trust the banking system.

[whiskyrocker]

My advise. Don''t keep more than the FDIC insured amount of $100,000. I''d be pissed too.

[keithle1]

We need people to take 5 years off from reproducing. If you just have to have a baby or your head & uterus will explode, adopt one. It makes no sense for women to pop out babies left & right in the current economic climate. Why bring more people into the world now?

Think before you procreate. Get a vasectomy. Tie your tubes. We have finite resources of EVERYTHING. Wake up. Habla English?

[rgrxx175]

this is one way to p i s s off the people, vote for mccain if you want more of the same failed policy...

[cmp271]

As I alluded to the Committee of 300 on another storey, the fall of this country will be done by both parties. This latest bank thing is part of the plan..

[hsinco-2009]

As much as I hate bailouts, the need for one MAY help preserve our financial system but the Bu$hies and the Repugs that were the MAJORITY and abrogated oversight, all allowed their friends to reap (or is that rape) the US economy and now the other foot is beginning to fall.

But this may be just the tip of the iceberg. There was a lot of fraud being perpetuated on gullible US homebuyers and the money is now being accounted for.

Much like what the entire Bu$h Administration needs..... to be held accountable!

[ov442]

Hah, the ones that ran the bank are far far away from the branches. Im just glad all the workers are still working, we dont need more people on the street looking for jobs than we have now

[a8151947]

The people who run the bank are the ones that need to be arrested. But then again why worry, The no good dunb people on the hill are going to bail them out

[bobnjersey]

[Customers became infuriated, and police told them to behave or face arrest. Officers stood by at some other branches around Southern California, but there were no reports of problems. ]

arrest those who ran the bank ... there the ones who created the problem.