Posted on 03/29/2009 8:05:06 PM PDT by Maelstorm
...FlashBack So why a 30s style bank panic now? Why Indymac?
Because the left hated them. Indymac has been in the crosshairs for some time. The trial lawyers started going after them about a month ago. Not long after that, Schumer started sending letters to regulators attacking Indymac, questioning the financial viability of a bank which he had never examined. Neither Schumer, nor any of his staff even bothered to contact Indymac with any questions. Unsatisfied with the response, Schumer leaked his letters to the press. The local paper in Pasadena (where the bank is located) played along, and ran the story with a headline strongly suggesting insolvency. Of course, the next day depositors lined up at the door and started withdrawing money. Over the next 11 days, $1.3 billion came out. Indymac, just a regional bank, could not stand that kind of tsunami and it was forced to close its doors. So far about half their workforce has been laid off; and roughly 10,000 depositors are without full insurance coverage for their lost deposits. The shareholders have lost nearly everything.
While Schumer was writing his letters, a left of center ‘community’ group named the Committee for Responsible Lending was preparing its own attack on the bank. The same week as Schumer’s leak, they released material to the press accusing Indy of mistreatment of minority applicants. There are literally hundreds of small activist ‘public interest’ law firms, ‘community’ activists, think tanks and advocacy groups around the country that make their living attacking mortgage lenders. These groups label bankers racist if they hesitate to lend in neighborhoods in decline or to minority applicants with spotty credit histories. If the banks then decided to approve the loans, but charge a higher level of interest to compensate for the higher level of risk, then these groups accuse them of ‘predatory lending’. If the banks are proven right, and the borrowers refuses to repay the borrowed money, then the banks are smeared for their ‘greed’ in making the loans in the first place. The Committee for Responsible Lending is a sort of umbrella organization for these groups. Large donors can donate to the cause by donating to CRL and letting them spread the money around.
Well, they went after Indymac, and the result is the second largest bank failure in US history. Of course, we’ll hear a lot about ‘greed’ this week, and we should. But whose greed? Schumer’s greed for power? Community activists' greed for shakedown money? Trial lawyers greedy for huge class action settlements? Hedge fund managers who write big checks to these groups and the Democratic Party (including Schumer’s Democratic Senatorial Campaign Committee) and then turn around and make mountains of money shorting mortgage paper? No, we’ll hear about none of the above from most in the media. The real culprits will have gotten away with it, and the victims will bear the blame.
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The Democrats not only set up this mess this man flipped the first Domino.
This guy would be the one I’d put first on the list. Plenty to follow.
It set up George Soros to take over IndyMac and allow him to make billions of dollars more off of U.S. citizen’s backs.
About time someone started talking about this fact!!!
Quick somebody check for possible donations to Chucky from George Soros and MoveOn.org Last week Soros and a group of private investors bought IndyMac.
just another reason to despise that p.o.s.
www.dumpchrisdodd.com and
www.rejectreid.com
there are many colorful domain names waiting for imaginative activists!!
Get to work now.
Yes it did and no one is talking about it.
This would be a Pulitzer prize winning blockbuster of a story if Schumer were a Republican.
Makes Watergate look like a college frat prank.
IndyMac was taking market share away from JPMorganChase and Citigroup. This was an orchestrated hit. IndyMac never knew what hit it. It had no lobbyist in Washington and no PAC.
And Old Lizard Face is one of the more prominent arms prohibitionists too.
we need to get this stuff out there
the truth is probably even more sinister and downright criminal
this needs to be investigated...
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