Posted on 07/12/2008 10:31:55 AM PDT by kennedy
An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure. In simple language, federal regulators blamed Schumer for a run on the bank.
Here's from the press release issued by IndyMac's regulator, the Office of Thrift Supervision: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.
"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."
Schumer's response? In an e-mail quoted by Bloomberg News, he says: "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today ... Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs.''
(Excerpt) Read more at latimesblogs.latimes.com ...
....I believe this fit in perfectly with the goal of the political and social left in this country, which is: the impoverishment of the country and the destuction of the middle class. Schmucky Schumer is a good fellow traveler.
Hey, Chucky Schmucky Schumer, “false fingers of blame?” You’re an expert, as are your pathetic cohorts.
Lock him up and throw away the key.
Chuck Schumer. A name that should always be followed with a good spit.
I bought this turkey in 2005 because it had good earnings. I dumped it in 2007, with a loss of $500 or so. I guess I was lucky to get out with most of my principal.
The curious thing is why did Schumer release the letter?
Being a self-obsessed, Spitzer-like nut, what was in it for himself? I bet he was extorting someone associated with the bank who failed to pay him off.
Chuck Schumer is a good Democrat. Thus, he is blameless in this fiasco.
Now if a Republican had released the same letter, and the results were the failure of this bank, would it be time for a public crucifixion of a Republican for the same thing?
That was too kind. I'm not even sure I would trust Schumer with a KFC spork...
How ‘bout a good sh*t instead.
This man needs to be run out of the senate. Mitch McConnell, that’s your job. How many times are you going to let this man break the law (Michael Steele’s credit report) with impunity?
Dems are like Jekyll and Hyde. They bash you for doing one thing (not lending to deadbeats and/or undocumenteds). Then, if you listen to them, they bash you for the consequences (you bank fails). Of course, they are NEVER at fault for any of it.
It’s convenient to try to blame Schumer here, but Schumer’s letter was the canary in the mine, the IndyMAC management was the poison gas that killed this company, not some obnoxious weekly outrage press conferencing schmuck from New York.
Seconded. Prosecute ‘em.
The GOP needs to be all over this like white on rice.
Yes, America, the DEMOCRATS caused a big bank to fail.
Follow the money. Not the money in the run on the bank. Follow the money that stood to gain. Id be curious to know what hedge funds had shorted the stock before Shmucky opened his yap. It’s well known what a bed whore he is with a lot of hedge funds.
The Dims are hypoctites, I am not. I would defend a conservative for doing this. So too will I for a leftie.
He does not get a pass on forcing banks to make bad loans then attacking them when they do. Nor would a pubbie.
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