Saturday, July 12, 2008

Censure Schumer for Causing IndyMac Failure

Democrat Sen. Charles E. Schumer publicly taunted bank regulators last week about IndyMac Bancorp's financial condition, which helped trigger a sudden outflow of deposits from the Pasadena thrift, which now has become the second-biggest federally insured financial company to be seized by U.S. regulators.

Schumer sent letters to the Office of Thrift Supervision, the Federal Deposit Insurance Corp. and the Federal Home Loan Bank of San Francisco, saying he was "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers."

The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank FSB, starting next week, the Office of Thrift Supervision said in an e-mail message yesterday. The regulator blamed Schumer for creating a "liquidity crisis" after a letter on June 26, in which he expressed concern that the bank may fail.

The regulators' message, according to the latimesblogs.latimes.com, was an ignored: "Zip it, Chuck."

Now, it is up to Congress to tell Schumer to shut up.

Feds cite Schumer in collapse of IndyMac

UPDATE: According to the Los Angeles Times, federal regulators pointedly cited Schumer in explaining the bank's failure. In simple language, federal regulators blamed Schumer for a run on the bank.

Labels:

2 Comments:

Blogger netguru said...

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

11:16 PM  
Anonymous Anonymous said...

Actually, Schumer is nothing more than a political spitwad who is so bound up in the liberal narrative of defeat that he can't help himself.

When people think of Democrats they should think of all the failed programs since LBJ's time and ask themselves if that's what they really want more of.... it's NO Change we can believe in.

Oh, and the failed programs they blame on Republicans are all liberal programs that fail simply because they are wrong.

11:43 PM  

Post a Comment

<< Home