Justifying IndyMac: avoiding accountability through regulations.

Marcelino Corniel lost his life in the Iraq war. IndyMac then lost between $71,000 and $36,000 of the $370,000 life insurance policy Corniel purchased to ensure the livelihood of his family.

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I can't say that I was shocked so much as I was disappointed when I viewed reader responses on our website. Some comments blamed Corniel's mother, Elaine Lopez, for investing poorly, while others seemed to equate losing a son in war with winning the lottery.

I don't dispute that Lopez could have invested her money more wisely, but at the same time it's not like she went out and bought a Cadillac. Lopez placed $70,000 in a money market checking account and the remaining $300,000 in a CD, from which she used the $1450 a month interest yield to sustain her family.

I believe Lopez, when she says that IndyMac Bank managers persuaded her not to withdraw the money by claiming the addition of a third beneficiary would insure the entire sum.

The Monday after the news of Indy Mac's financial trouble broke, I went to Indy Mac and spoke with patrons. My questions were met by belligerent customers who informed me that bank representatives warned them against speaking with the press, and cited the media as a cause for Indy Mac's problems. Funny, I don't remember receiving a check from Indy Mac for managing their stocks to 23 cents a share, what they were prior to any article running.

Despite my Ivy League education, the hours I spent reading regulations, the two interviews I conducted with securities lawyers, and numerous calls to the Federal Deposit Insurance Company, I still fail to understand how the FDIC is not returning somewhere between $36,000 and $71,000 of Lopez's money.

Sure, Lopez was naïve for taking the word of a bank manager. But I bet she wasn't the only one to lose money because of promises made by IndyMac representatives. It's possible that IndyMac's employee's weren't intentionally deceiving Lopez. Maybe bank officials just didn't comprehend the same regulations that two securities lawyers, and a financial adviser failed to understand well enough to answers my questions.  But should incompetence excuse so-called officials from accountability?

When did regulations start to cloud our understanding of right and wrong? After all regulations are created by men, frequently flawed, and certainly subject to change.

Some have argued that Lopez should feel lucky to still have $300,000. Why? Because her son went to great lengths to protect his family? The $370,000 wasn't a gift from the government or a death benefit, but something that Corniel payed for with both his money and life.

Despite promises that he would be a recruiter, and by the spring of 2005 Corniel was back in Iraq, stationed with the 184^th Infantry out of Fullerton, CA..The 184^th was sustaining heavy causalities when Corniel decided to purchase the additional $170,000 in life insurance.

As an Iraq veteran, I knew a lot of servicemen who declined to pay the $40 a month for the  $250,000 in Serviceman's Group Life Insurance. At the same time I was never aware of anyone who sought additional life insurance. But Corniel, who was the patriarch of his family, wanted to ensure that his two younger sisters and mother were taken care of in the event of his death.

On New Years Eve  of 2005, most 23-year-old-Americans were drinking themselves into stupors while Corniel was defending their freedom to do so. As a former Marine attached to "Killer" company, Corniel had already seen a good deal of combat. But unlike some men, he didn't try to get a family hardship discharge and avoid his second tour. Corniel sacrificed his life for our freedom, with the knowledge his family would be able survive in his absence.

Corniel's legacy was intended to send his sisters to college, and support his illmother, not pad the bank accounts of rich men, as some would argue his service did. I urge Americans to remember Corniel as they drive their yellow ribbon adorned sport utility vehicles. And think about the regulations that qualify the loss of his legacy, while justifying the outlandish incomes of IndyMac's executives.  In the end you can blame Lopez for mismanaging the money, but don't think it couldn't happen to you.