Schumer causes IndyMac bank run
A leaked letter that Sen. Charles Schumer (D., N.Y.) sent letters to federal Regulators asking them to more closely monitor the financial health of IndyMac, the thrift operator based in Pasadena, California, had helped create a run on that bank. Senator Schumer wrote:
Concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers and that the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac
In the 11 days after this letter depositors removed billions of dollars from the bank. John D. Hawke, the U.S. comptroller of the currency, called the leak “reckless and grossly irresponsible.”
The Los Angles Times blog has a great post on this story.
Schumer attempts to write the story off as “Blaming the fire on the person who dialed 911″. However it must be understood that Schumer, while sitting on the Senate Banking committee has inside information on the situation. Just because he has it does not mean he should release it. If Schumer were on the board of directors of a private company and he released information on the health of a company while they were working out issues and as a result shares of the company were bought or sold based on the info, he would be indicted for insider trading.
Why would Schumer do this? Because he suffers from a situation that afflict many Democrats. The worse off things in America are the better it is for Democrats. Schumer did not think twice about doing this. He went for the political angle instinctively.
3 Responses to “Schumer causes IndyMac bank run”
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As Al D’amato once said of Chuck Shummer
“What a putz-head”
http://en.wikipedia.org/wiki/Al_D%27Amato
Schumer has never met a TV camera he didn’t love.
What a crook… this sounds like something the Congressional Ethics committee should look into.