Released: July 20, 2008

Banks responsible for the loss of trust

Source: David Lazarus, Los Angeles Times (Free Registration)

By his own admission, Simi Valley resident Vince Asturi knew he had nothing to worry about when federal authorities took over IndyMac Bank.

Asturi, 78, and his wife had less than $100,000 in assets at the Pasadena-based institution, and he understood that all their cash was thus covered by the Federal Deposit Insurance Corp.

Nevertheless, Asturi spent three days last week trying to get inside IndyMac’s Northridge branch. And when he finally made it to a teller’s window Wednesday, he immediately withdrew all his money.

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