Liberty Reborn

Liberal moonbat Chuck Schumer may be in hot water over his role in the run on IndyMac and his letter which lead to the collapse of the institution:

WASHINGTON (Reuters) - California’s attorney general is reviewing a request by former employees of IndyMac Bancorp Inc to investigate whether a New York senator triggered the bank’s collapse by releasing confidential information.

At issue is a much-publicized letter that Chuck Schumer, a Democrat, sent in June to the Federal Deposit Insurance Corp (FDIC) and Office of Thrift Supervision (OTS) questioning the company’s ability to survive.

The FDIC took control of IndyMac on July 11 after depositors withdrew more than $1.3 billion over 11 days. It was the third-largest bank failure in U.S. history. At the time, OTS Director John Reich blamed Schumer’s letter for causing the run on the bank.

In a letter to Attorney General Jerry Brown last week, 51 former IndyMac workers wrote: “From the day (Schumer’s) letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure became inevitable.”

Of course, IndyMac should have had enough assets to cover their liabilities. There is no excuse for them not doing so. However they did appear to be opperating well with the amount of capital they did have on hand to settle debts. Schumer should also be accountable for causing a panic that would not have occurred without his influence and especially if he disclosed something that was indeed confidential.

But I am sure he will never be touched by any serious investigation or held accountable if found guilty of a crime.

This entry was posted on Tuesday, August 26th, 2008 at 1:01 am and is filed under J.J. Jackson's Daily Opinion. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.