Questions for a Panel of Bankers

I’ll be moderating a panel of bankers on Dec 1, 2008 in Denver at the National Auctioneers Association’s convention.  I present at 11:00 AM (Title: There Always Was a Subprime Market. View my slides here) and the panel starts after lunch.  I’m preparing some questions for the panelists. Here’s what I have so far. Your suggestions are welcome.

1. When will you begin to lend again to borrowers who are other than prime?

2. What will happen if/when the FDIC runs out of money?

3. How are local, state-chartered banks preparing for the coming loan losses in the commercial and development sector?

4. How are loan modifications performing at your institution?

5. What do FHA delinquencies look like at your institution?

Indymac Bank Taken Over by the FDIC

The second largest bank failure in the history of the U.S. means about 1 billion in lost deposits held by 10,000 customers as reported by CNN Money. Accordingly, the Indymac website has a new look.  The LA Times has pictures of customers lining up outside the bank, looking inside and here’s a picture of employees loading up their car with brown cardboard boxes.

Just before their demise, Indymac was offering high rates for their Certificates of Deposit.  The LA Times asks an interesting question:  “Should a money-losing financial institution be permitted to pay well-above-market deposit rates under the protective umbrella of federal deposit insurance?  For a six-month CD with a $5,000 minimum deposit, IndyMac’s website [on Wednesday, July 9th] was offering an annualized yield of 4.1% as an online “special.”

I wonder what will happen to the severance packages offered to the 3800 workers who lost their job this past Monday?

I wonder which banks (federal or state chartered) are offering high, high rates on deposits today?