LOS ANGELES (CN) – Indymac Federal Bank and the Federal Deposit Insurance Corporation refused to insure four accounts up to the required $100,000, the account-holders say in Federal Court.
Katherine Coleman says the FDIC shorted her $478,638 from four insurable accounts after it took over Indymac Bank in July.
Coleman says the FDIC told her that it would consolidate her accounts and send her a receivership certificate. Then it sent her a check for $184,524. That’s half of the $369,048 the FDIC calculated that Coleman had at Indymac, in her own name and that of the Coleman family.
Coleman says she refused to sign the check because Indymac actually held $663,162 in her combined personal, family and trust accounts.
She says each account should be insured to $100,000, and possibly more if the recent increase in federal insurance applies.
Coleman says her personal money market account held $180,357, but the FDIC told her that it would only insure $46,979 of that account. She says it gave no reason for coming up with that figure.
Coleman was co-trustee with Theresa Coleman for the Coleman Family Bypass Trust and Coleman Family Survivor Trust. The first trust account held $71,000, while the second trust held $84,890. The FDIC allegedly refused to insure either account.
Katherine Coleman is also trustee for the Revocable Living Trust of Mary Donohue. Indymac allegedly told Coleman that the trust would be insured up to $100,000 for each of its seven beneficiaries.
The plaintiffs say the bank never told them that the account balance could be added to Coleman’s personal account balance if the bank failed. However, the FDIC refused to cover any of the Trust’s $326,915.
Katherine and Theresa Coleman are represented by Morton Rosen and James Oldendorph Jr. with Haight, Brown & Bonesteel.