PCC funds not affected by bank collapse

Despite the federal takeover of the Pasadena-based mortgage lender IndyMac by the FDIC, PCC funds and investments remain secure and unharmed amidst the financial institution’s recent collapse, officials said.”Right now [there is] no overt effect,” said Vice President of Administrative Services Kindred Murillo. “Our funds are held in the LA County Office of Education Treasury. We don’t have any money at risk as far as I know.”

Through the LA County Treasury, PCC is fully insured, according to Murillo.

Murillo also stated that in a recent board meeting, trustees and administrators did not address any impact created by IndyMac’s failure that may affect the school.

Murillo’s biggest concern, however, is for the students and families that may be affected.

“We [will] try to help them with financial aid in case they didn’t need it before by making sure those services are available,” Murillo said.

Since the FDIC seized the bank Friday, IndyMac customers have been anxiously awaiting the status of their assets.

Hundreds of angered investors lined up IndyMac’s headquarters to be greeted with police patrol, incomplete answers and more worry to their situation as some customers were forced to return another day due to limited help from bankers.

Deposits up to $100,000 will be fully insured, government officials said Tuesday.

The FDIC has also said that it will pay customers an “advanced dividend” equal to fifty percent of uninsured deposits.

USA Today’s Sandra Block reports that the FDIC will not make any more additional payments until the FDIC sells the rest of IndyMac’s assets.

With the FDIC identifying at least 90 institutions as “problem banks,” Murillo said the school would be cautious with investment activities.

The problem, she said, is not having money in a bank but, how easily and unknowingly banks may collapse.

“We’re going to look at what we’ve got [and] not [invest] in an ‘endangered bank,'” Murillo said.

Murillo keeps track of the school’s money every day, a process that starts at 5 a.m. by keeping herself updated with several reports from several publications.