Posted by: Sanity Rules | July 13, 2008

Chuck Schumer – The New Chicken Little

In his position as a Senator and as a member of the Banking Committee, Charles Schumer occasionally comes across information that is meant to be kept confidential.  Maintaining confidential information is necessary to collecting quality data.  Regulators need to be able to provide truthful information and expect that it remains confidential until an agreed resolution is formed and action is taken.  Unfortunately Chuckie dosn’t understand this concept and instead for political or personal financial gain, decides to run around yelling that the sky is falling.  This latest act of stupidity has caused a run on the Indyy/Mac bank. 

Federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank’s failure. In simple language, federal regulators blamed Schumer for a run on the bank.

Here’s from the press release issued by IndyMac’s regulator, the Office of Thrift Supervision: “The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

“This institution failed today due to a liquidity crisis,” OTS Director John Reich said. “Although this institution was already in distress, I am troubled by any interference in the regulatory process.”

Schumer’s response? In an e-mail quoted by Bloomberg News, he says: “If OTS had done its job as regulator and not let IndyMac’s poor and loose lending practices continue, we wouldn’t be where we are today … Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs.”

They might be able to do just that as long as Chuckie is kept out of the loop. 

Just for the record, when the fed steps in, all assets up to 100K are guaranteed which leaves all the “poor unfortunates” that the Democrats are so puffed up about “protecting” as losing NOTHING. 

So who is Chuckie trying to help warn?  My guess can only be fat cat contributors who may have more than 100K investments.  In light of this glaring bit of verbal diahrea, the Senate needs to perform an investigation into Schumer’s financial and campaign ties to IndyMac investors and in leaking insider information for a profit.

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  1. […] Chuck Schumer – The New Chicken LittleThe immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s … […]


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