Police
ordered angry customers lined up outside an IndyMac Bank branch to
remain calm or face arrest Tuesday as they tried to pull their money on
the second day of the failed institution's federal takeover.
At least three police squad cars showed up early Tuesday as
tensions rose outside the San Fernando Valley branch of Pasadena-based
IndyMac.
Federal regulators seized Pasadena-based IndyMac on Friday
and reopened the bank Monday under the control of the Federal Deposit
Insurance Corporation. Deposits to $100,000 are fully insured by the
FDIC.
Worried customers with deposits in excess of insured limits
flooded IndyMac Bank branches on Monday, demanding to withdraw as much
money as they could or get answers about the fate of their funds.
When it was clear some wouldn't get in before closing, FDIC
employees apparently took down names and told them to return Tuesday.
Other customers began lining up at 1:30 a.m. Tuesday, and
by dawn, tensions escalated because people on the list were getting
priority.
By 8 a.m., about 50 people on the list waited in one line and many more waited in another.
Five people were allowed in at a time.
Customers became infuriated, and police told them they could be arrested if they didn't remain calm.
Police stood by at some other branches around Southern California but there were no other reports of problems.
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