Theory 1: Schumer is the head of the Senate Democratic Campaign Committee. If he can show that he can destroy a bank by circulating a letter questioning its solvency, then he might expect that will lead to more campaign contributions from fearful financial institutions.
Theory 2: He believes he can increase Democrat gains in November by causing one or more banks to go under, producing more economic turmoil
IndyMac has no PAC, its executives made no political contributions, and it does not even have a registered lobbyist in Washington. My guess is it was completely blindsided by Schumer. Whatever deals it may have been working on to line up new capital infusions or to sell any of its assets went right down the crapper, along with over a billion dollars in deposits that were withdrawn by panicked customers.
You might be asking yourself, why is a New York Senator asking a regulator to look into a California bank’s “solvency”?
Theory 1: Schumer is the head of the Senate Democratic Campaign Committee. If he can show that he can destroy a bank by circulating a letter questioning its solvency, then he might expect that will lead to more campaign contributions from fearful financial institutions.
Theory 2: He believes he can increase Democrat gains in November by causing one or more banks to go under, producing more economic turmoil
Possibility number three. A New York based bank swoops in to save the day and pick up the pieces. For pennies on the dollar I might add.
Maybe a bank from this list.
Chuck Schumer is Chairman of the Democratic Senatorial Campaign Committee. Take a look at some of the DSCC’s top donors so far :
Goldman Sachs $362,550
JPMorganChase $311,604
Morgan Stanley $169,450
Citigroup $146,250