Banking Collapse is Escallating, Do You Have Cash Set Aside?

Jim Sinclair’s Commentary:

Have you acted to protect yourself? This type of event has only one way to go, from California to Maine.

WaMu, now there is a kettle afraid of the pot. Can you wait 8 weeks to eat?

WaMu wary of IndyMac cashier’s checks

More strange doings tonight surrounding the failure and federal takeover of IndyMac: some rival banks are refusing to honor cashier’s checks written by IndyMac — even though those checks are backed by the federal government.

John Bovenzi, the FDIC official now running IndyMac, tells the Los Angeles Times today he is “deeply troubled by reports that there are financial institutions that are refusing to honor or are placing excessive holds on IndyMac Federal checks.”

On latimes.com tonight: “Sheryl MacPhee, 46, said she liquidated a certificate of deposit at IndyMac’s San Marino branch Tuesday morning after a two-hour wait. She then took the cashier’s check to a Washington Mutual branch in South Pasadena to deposit.

“MacPhee said a WaMu manager told her that under a new corporate policy, the bank was not accepting IndyMac checks. If a customer insisted on depositing the check, it could be eight weeks or more before the full amount would be accessible, she said she was told.”

More: “WaMu spokeswoman Olivia Riley declined to discuss details of the bank’s check policies. ‘We have a check hold policy that takes into consideration a variety of factors,’ she said. ‘WaMu is accepting checks from IndyMac customers; however, depending on the specifics, funds will be subject to an extended hold period.’ Wells Fargo said it too was placing extended holds on many IndyMac checks as a precaution.

“Officials at the Office of Thrift Supervision, WaMu’s chief regulator, are investigating the complaints about the checks, OTS spokesman William Ruberry said.”