How did a letter from Senator Schumer to the Office of Thrift Supervision ever become public? Someone had to bring it to a reporters’ attention, then explain to the reporter what the letter means, and then proofread what the reporter wrote down to ensure it is correct. Who did this?
Hate to say this boys, but the people who deregulated this industry are also responsible. The Financial Modernization of Act of 1999 which is called Gramm-Leach-Bliley which repealed the Glass-Steagall Act created all this nonsense with the Financial Industry we see today. That is more the reason than some premature words spoken by a foolish Senator. If this industry wasn’t allowed to run wild we wouldn’t have this situation now to even comment upon. Is it anyone’s surprise that Phil Gramm is in denial?
From what I have heard from news reports, this letter was circulated all over California, causing a run on the bank. An investigation should definitely be made as to how it became public and achieved such widespread circulation.
The author of the article quoted from the Wall Street Journal.