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).