Long Beach Customers Face Long Waits at IndyMac

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In Long Beach, hundreds of IndyMac Bank account holders showed up Monday at the Pacific Coast Highway branch to close out their accounts. KPCC's Adolfo Guzman-Lopez was there.

Adolfo Guzman-Lopez: IndyMac staff posted seven pages of frequently asked questions and answers outside the bank doors. That didn't stop people in line from grilling any bank employee who ventured outside.

IndyMac Employee: We're open. Monday through Saturday, we're open.

Guzman-Lopez: This employee encouraged customers to come back later in the week. Most stayed in line. Retired Long Beach mechanical engineer William Kosin was there with his fiancé Joey Chan. They wanted to withdraw money they'd put in high interest certificates of deposit a few years ago. Kosin said he began to worry in recent weeks when IndyMac began laying off employees.

William Kosin: We just hope we get all our money back.
Guzman-Lopez: How much do you have in the bank?
Kosin: A little over 300,000.

Guzman-Lopez: The federal government doesn't guarantee the full amount of deposits over $100,000 dollars. Ray Lopez, a manager at an electronics company, kept his IndyMac Bank accounts below that amount. He walked out of the branch after closing them, six hours after he'd showed up at the branch.

Ray Lopez: My parents had some money, and I control their money also, and my own money. I just decided it's time to pull it and find something a little more secure. And you probably won't get the interest rates they were paying, but after today, who knows what they're going to be paying.

Guzman-Lopez: Some Long Beach customers said they didn't know where they'd put their money next.