Posted on 07/11/2008 7:48:49 PM PDT by bamahead
Sen. Charles Schumer, D-N.Y., asked several regulators to keep a close eye on the financial well-being of Pasadena, Calif.-based IndyMac Bancorp Inc., The Wall Street Journal reported June 27.
In letters sent on June 26 to the FDIC, the OTS and the Federal Housing Finance Board, Schumer said the thrift's worsening financial situation posed major risks to taxpayers and borrowers, and "the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac or minimize the damage should such a failure occur."
The letter asked the Federal Home Loan Bank of San Francisco, from which IndyMac had $10.4 billion of loans at the end of the first quarter, and the finance board whether IndyMac's credit and collateral terms "accurately reflect the associated risks."
Schumer also asked the San Francisco bank if it had plans to lessen the risks of its exposure to IndyMac.
IndyMac Chairman and CEO Michael Perry said he had not seen the letters and declined to comment on them, the Journal reported. He added that IndyMac is trying hard to raise capital.
The newspaper saw drafts of the letters.
This is what set off the run...
5.75% capital is bad, very bad.
schmucky has taken out several forests writing ‘cover my butt’ letters - bottom line is HE caused this - and now wants us to trust him to fix it?
Follow the money to Chucky Crook.
It might have been useful if it had been sent in June 2007. All it is now is butt cover.
In letters sent on June 26 to the FDIC, the OTS and the Federal Housing Finance Board....and promptly leaked to the press to make himself look like a big deal...
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