Friday, July 11, 2008

Senator Schumer (D-NY) Kills a Bank

Reportedly the most dangerous place in Washington, DC is attempting to get between Senator Charles Schumer, the senior senator from New York, and a TV camera.

Today federal regulators directly blamed Sen. Schumer for causing the third largest bank failure in history, a disaster that is likely to cost American taxpayers as much as $8 billion.

Senator Schumer ten days ago wrote a letter to federal regulators that specifically named IndyMac, a $32 billion bank, as failing. Senator Schumer made the letter public, which caused a depsitor run on the bank.

According to John Reich, the Director of the Office of Thift Supervision, Mr. Schumer's public release of the letter "spooked" the bank's customers, giving the bank "a heart attack" that resulted in its failure.

In addition to the loss to taxpayers, approximately 10,000 IndyMac customers will lose at least a portion of their deposits with the bank.

No other senator has made public such a letter. This is a first.

RELATED LINKS: The Two Faces of Chuck Schumer

Welcome to Instapundit readers.

UPDATE: Don Surber verbalizes the subject with "Schumered," the past tense version of "to Schumer," meaning to negligently destroy something of value by seeking personal press attention. Similar to loose lips sink ships. Chuck Schumer unarguably has the loosest lips in a body where 100 pairs of lips flap almost unceasingly.

These are the same people who want to manage the health system. Scary.

6 comments:

Anonymous said...

Why doesn't IndyMac sue Schumer?

They won't win, but it's probably the only way to get some publicity for sabotage.

Chris said...

This is stupid. Another spin. The bank was insolvent.

Why the heck are you trying to blame Schumer just for pointing it out?

This is why people have no faith in government or investments. Because you are all liars.

The bank was insilvent already, schumer did not make it insolvent, he pointed it out. Something the lenders leadership should have been doing already.

But these lying fatcats don't care about their invesotrs or it wouldn;t have been Schumer who got the news out there, it would have been the banks own leadership, if that is what you can call it.

Stop spinning for your own politcal gains. You disgust me.

Chris Marley said...

Why wasn't that same letter sent to shareholders? Dopes.

The whole lot of you congressmen should be jailed. You have no idea how to be honest or work for the people. You only interested in your stupid party and the same old polotics that are continuing to destroy America.

Your treasonous criminals.

Bob Leibowitz said...

Chris -- Thanks for your comment.

The bank was insilvent already, schumer did not make it insolvent, he pointed it out. Something the lenders leadership should have been doing already.

Actually, no. IndyMac was not insolvent. It was solvent and attracting deposits before Senator Schumer made his letter public, at which point deposits stopped and customers withdrew more than $1 billion of funds, causing it to become insolvent.

Yes, it was troubled but it was still alive. Now it is not. There really can't be any question about the facts.

N Waff said...

== Senate Banking Committee Hearing ==

Sounds like the Congress Senate Banking Committee needs to conduct hearings on the actions of Schumer, for causing the $1.3 billion run on the bank and the collapse of IndyMac, which will cost US Taxpayers over $8 billion.

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