IndyMac is the third largest banking failure and given the economy, the housing market, and credit crunch, more shut downs are expected.
The last thing anyone in the line outside IndyMac expected is that come Monday morning, the bank with all of their money, would've failed.
"I have not confidence in our government or the system so what I'm wondering now, I just want to get my money and I want to leave," said Bronzell Carter, an IndyMac customer.
However, IndyMac's collapse isn't just worrying its own customers, it's causing stress across the banking sector board. Washington Mutual and Wachovia reported their worst ever stock drop since going public. Washington Mutual's shares dropped by a third and Wachovia's dropped by 12.5 percent.
"It's unlikely that it's going to default or fail, but you never know," said Marco Pagani Ph.D., Assistant Professor of Finance at San Jose State University.
Pagani says both these banks are on a list of 90 that are considered risky by the FDIC and thinks a number of smaller, regional banks in the coming year will likely fail first.
"There might be 100 some analysts assume 300 banks that go down, of course most of the banks will be regional or community banks that are a relatively small size," said Pagani.
Washington Mutual isn't necessarily in dire straits now. The company has $40 billion in equity, but analysts predict a $26 billion loss this year. Which means the bank will need to create more of a capitol cushion, in order to survive these times.
"I think it's too early to panic, it's too early to panic," said Dave Fan a Washington Mutual customer.
"I just don't think it's going to happen right away. It's a little too early to start thinking every bank is going to close," said Debra Ransier, a Washington Mutual customer.
Because of all the risk right now, analysts suggest not having more than $100,000 in any one account, since that's how much the FDIC guarantees. Instead it is better to have several, smaller accounts.
For more information about IndyMac accounts, please call (866) 806-5919
or click here for the Web site.
