Bank failures then and now

It’s hard to watch news clips of depositors lined up outside IndyMac Bank branches in California without recalling similar scenes from Depression-era documentaries or the fictionalized bank run in “It’s a Wonderful Life.”

But there’s one big difference between then and now, besides the fact that yesterday’s bank failures are remembered in black-and-white, while today’s are broadcast in living color. That is, we now have federal deposit insurance to protect our savings, up to certain limits, in the event of messes like this.

The Federal Deposit Insurance Corporation, which has taken over the operation of IndyMac, issued this statement on July 13 in attempt to allay depositor fears and describe once again how FDIC coverage works.

Our Money blog explained both FDIC coverage and other types of investor protections in this recent roundup.

What, if anything, should bank depositors be doing at this point? We’d suggest checking to make sure your accounts are within the FDIC insurance limits and, if not, moving the excess to another bank, just to play it safe. You may also be able to restructure your accounts within your current bank to assure you’re covered. Other than that, we see no cause for action or for alarm.