‘Fear and anxiety’

Hundreds of nervous customers flocked to the Costa Mesa branch of IndyMac Bank Monday morning fearing they might lose the money they had invested in the failed institution.

Bank officials announced the closure of the Southern California bank that had assets totaling more than $32 billion at the end of the business day Friday, and workers were greeted early Monday by a sea of frantic customers. The bank doors were locked and security guards let people in one at a time. Each exiting person was swarmed by a group of people seeking information.

“How much did they give you?”

“What type of account did you have? How many beneficiaries?”

A shouting match even broke out when a woman was accused of cutting in line and subsequently sent to the back by a security guard.

Many brought lawn chairs and umbrellas as they waited in the sun, slowly moving through the line that snaked from the overflowing parking lot to the bank’s back door.

The FDIC insured all deposits up to $100,000 in the bank, but many of the depositors had more invested and were unsure how much they would be able to withdraw. Rumors spread through the crowd concerning the bank’s policies, and some people who had been inside said different employees gave different answers.

The bank estimates that about 10,000 people deposited about $1 billion in uninsured money, and they will get half of that money back immediately, according to the FDIC.

As of Monday, the FDIC is operating IndyMac like a normal bank. Nothing has changed at many of the branches, including sales representatives, said FDIC spokesman David Barr, and the panic is unjustified.

“We’re really trying to tell people there’s no reason to come in today. Your money is safe. You could consider IndyMac one of the safest banks in the country now,” Barr said.

Despite the federal government’s reassurances, local customers are still skeptical.

“We just want to make sure we get our money, but they’re not guaranteeing it right now,” said Brandon Heinz of Corona del Mar. “There’s a lot of fear and anxiety here. You can feel it.”

He said he had $600,000 deposited in the bank in a joint account but the bank was only insuring $400,000. As soon as possible he wanted to take all of it out of the account.