IndyMac deposits safe, FDIC says WASHINGTON, July 14 (UPI) -- The U.S. Federal Deposit Insurance Corp. says depositors with accounts at the seized IndyMac Federal Bank FSB have nothing to fear.
The more than 200,000 customers of IndyMac with deposits of $18 billion are fully protected, the FDIC said in a statement.
Despite the FDIC attempt to reassure depositors, customers lined up early Monday at IndyMac branches in Pasadena, Calif., and elsewhere, intending to withdraw their funds.
Margie Harbottle, 62, of Pasadena told the Los Angeles Times she thought it was stupid to do a run on the bank but she wanted to move her money someplace where she said it would be safe and draw interest.
Even if it's only 3 percent she said. Three percent is better than zero.
FDIC employees spoke with people in line at the banks Monday, answering questions and discussing the bank's new policies, the newspaper said. FDIC spokesman David Barr told the Times IndyMac right now is one of the strongest banks in the country.
Regulators Friday seized control of the lender, a spinoff of Countrywide Financial Corp. with $32 billion in assets.
As conservator, the FDIC created the IndyMac Federal Bank FSB, which would continue to provide banking services in communities served by the former IndyMac Bank, the statement said.
The statement said the regulator's move was largely a non-event.
The banking system in this country remains on a solid footing through the guarantees provided by FDIC insurance, the statement said.
Report: GM set to announce job cuts DETROIT, July 14 (UPI) -- U.S. automaker General Motors Corp. is set to announce it will cut jobs and take other steps to deal with its sagging fortunes, The New York Times said Monday.
GM Chairman and Chief Executive Officer Rick Wagoner is expected to reveal a plan Tuesday, first addressing employee and then holding a news conference with other GM executives, the newspaper said.
GM spokesman Dan Flores told the Times Wagoner will announce a variety of actions Tuesday to respond to current market conditions, but he did not provide details.
The automaker just announced a major restructuring six weeks ago. The Wall Street Journal reported last week that GM was weighing cutting thousands of white-collar jobs and considering whether to sell or discontinue one of its brands.
Company officials have already decided to put GM's Hummer division on the market.
Citing sources familiar with the situation at GM, the Journal said the moves were being considered as part of a plan to return to profitability by 2010.
Lawyer plans to call detainee witnesses GUANTANAMO BAY, Cuba, July 14 (UPI) -- U.S. lawyers for terror detainee Salim Ahmed Hamdan said Monday they intend to call other detainees to testify at his Guantanamo Bay, Cuba, trial.
