IndyMac, which has $32 billion in assets, was seized by the government on Friday. The loss-ridden mortgage lender had faced a run on the banks since Schumer, on June 26, made public a letter he sent to the Office of Thrift Supervision and the FDIC, saying he was “concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers.”
Once again a politician uses their ability to yell fire, and causes damage through the ensuing panic. When will our politicians realize that the constant drumbeat of bad news, and talk of doomsday will ultimately create a self-fulfilling prophecy?
What was so compeling that Sen Schumer felt the need to comment on something that he apparantly knows little about? Regulators had specifically fingered Schumer for IndyMac’s failure. The OTS said that “the immediate cause of the closing was a deposit run that began and continued” after Schumer went public with his concerns. “This institution failed due to a liquidity crisis. Although this institution was already in distress, I am troubled by any interference in the regulatory process”
Nice work Schumer,it looks like you cost us, the tax-payers, about $4-8 billion (with a B).
3 Comments
Typical Democrat. Steps on his own d$$$ and than blames someone else. We will all be in it deep when Obama wins in Nov.
New York Times reported that hedge fund managers have a new champion in their effort to keep legally dodging the taxes the rest of us pay: none other than New York Senator Charles Schumer. Now you know who is Schumer’s friend and why he caused the bank run on Indymac. He truly support hedge fund and private equity because they truly support him.
http://www.nytimes.com/2007/07/30/washington/30schumer.html?_r=1&oref=slogin
“Large Investor decided to pay a few bucks to a Senator in New York to force the issue.”(Prospect Mortgage Backed By Sterling Fund–Private Equity Acquired The Mortgage Branches from Indymac before FDIC takeover)
http://www.housingwire.com/2008/07/03/regulators-to-schumer-weve-got-a-whole-bag-of-shhh-with-your-name-on-it/
“And do remember that there are many investment bankers located in New York, making them pretty influential constituents of Sen. Schumer.”
http://www.pasadenastarnews.com/opinions/ci_9783402
“In a Sunday news conference, he said everything in his letter was already known to the public.”
If it was already known to the public, what is the reason for his public letter? It is contradict to what he said previouly :”I just bring private message to the public. Do not kill the messanger.” What a great liar from time to time!
http://www.cnn.com/2008/POLITICS/07/13/indymac.schumer/?iref=mpstoryview
Do you really think just making a couple comments is what caused the bank to tank? Try the shady CEO who spent the last 2 years running IndyMac into the ground. That’s why the FBI is going through all their files.
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