In a written statement, the Office of Thrift Supervision, which regulated IndyMac, said "the immediate cause" of the failure was statements made by Sen. Charles Schumer, a New York Democrat. Mr. Schumer in late June publicly raised concerns about the bank's solvency.
Can't wait to see Shumie wiggle on this one.
BTW, the director of the OTS is John Reich, who once served as Chief of Staff to Sen. Connie Mack. He is no wallflower and he's taking it to Schumer on this one. Schumer also had a lot to do with the collapse of Countrywide.
Everyone needs a little Federal on Federal now and then.
I’d say the ‘immediate cause” was a major brokerage house downgrading the share price target from $1 to $0 after they determined there would be no shareholder equity left once writedowns were complete, despite their statement that they did not mean to imply that that meant the bank would become insolvent immediately.
CBS Radio News was blaming Chuckie specifically.
---IndyMac came under fire last month from Schumer, the Democrat from New York, who said lax lending standards and deposits purchased from third parties left it on the brink of failure. During the 11 business days after Schumer explained his concerns in a June 26 letter, depositors withdrew more than $1.3 billion, the OTS said. ``This institution failed due to a liquidity crisis,'' OTS Director John Reich said in the statement. ``Although this institution was already in distress, I am troubled by any interference in the regulatory process.''
I double any wiggle will be forthcoming. Socialists want the private sector to fail so that the government can take over the economy (and our freedom) Fully supported by the MSM of course.