Posted on 07/12/2008 10:34:14 AM PDT by kennedy
An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: 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.''
(Excerpt) Read more at latimesblogs.latimes.com ...
....I believe this fit in perfectly with the goal of the political and social left in this country, which is: the impoverishment of the country and the destuction of the middle class. Schmucky Schumer is a good fellow traveler.
Hey, Chucky Schmucky Schumer, “false fingers of blame?” You’re an expert, as are your pathetic cohorts.
Lock him up and throw away the key.
Chuck Schumer. A name that should always be followed with a good spit.
I bought this turkey in 2005 because it had good earnings. I dumped it in 2007, with a loss of $500 or so. I guess I was lucky to get out with most of my principal.
The curious thing is why did Schumer release the letter?
Being a self-obsessed, Spitzer-like nut, what was in it for himself? I bet he was extorting someone associated with the bank who failed to pay him off.
Chuck Schumer is a good Democrat. Thus, he is blameless in this fiasco.
Now if a Republican had released the same letter, and the results were the failure of this bank, would it be time for a public crucifixion of a Republican for the same thing?
That was too kind. I'm not even sure I would trust Schumer with a KFC spork...
How ‘bout a good sh*t instead.
This man needs to be run out of the senate. Mitch McConnell, that’s your job. How many times are you going to let this man break the law (Michael Steele’s credit report) with impunity?
Dems are like Jekyll and Hyde. They bash you for doing one thing (not lending to deadbeats and/or undocumenteds). Then, if you listen to them, they bash you for the consequences (you bank fails). Of course, they are NEVER at fault for any of it.
It’s convenient to try to blame Schumer here, but Schumer’s letter was the canary in the mine, the IndyMAC management was the poison gas that killed this company, not some obnoxious weekly outrage press conferencing schmuck from New York.
Seconded. Prosecute ‘em.
The GOP needs to be all over this like white on rice.
Yes, America, the DEMOCRATS caused a big bank to fail.
Follow the money. Not the money in the run on the bank. Follow the money that stood to gain. Id be curious to know what hedge funds had shorted the stock before Shmucky opened his yap. It’s well known what a bed whore he is with a lot of hedge funds.
The Dims are hypoctites, I am not. I would defend a conservative for doing this. So too will I for a leftie.
He does not get a pass on forcing banks to make bad loans then attacking them when they do. Nor would a pubbie.
Or in this case, follow the NO money. I had read on an earlier thread that IndyMac had donated 0 dollars to the DNC while other banks had donated hundreds of thousands.
"Tell your friends I don't want a lot, just enough to wet my beak."
Can tens of thousands of investors band together to sue a sitting US Senator?
IndyMAc should have ponied up some bucs for the Dems, then maybe they would still be un business.
The left is worse than the islamic terrorist because at least the terrorist tell you they want to destroy us, and the left tells us that they want to help us, then they stick it to us.
Schumer...and his band of Congressional thieves should be investigated for shorting these banks..and S & L’s..before his remarks.
What you should have done...is short it right after you sold it.
Oh ye bankers and bankers-like sendth all thy due homage to the Campaign of the Schumer or riskth all -- see that dead bank, be-lily-ed and encasketed yonder! Let that not be thy fate, oh bankers all.
Send money now.
When The Schmuck published his letter, IndyMac was trading @ $1.18/share. No hedge fund would short **anything** with that type of risk/reward ratio.
No kidding...with a heck of an opportunity to short that dog in Feb..at $10.
Lehman's been toast ever since Bear Stearns went tapioca. Schmuckles had nothing to do with Lehman -- you're just seeing a huge shakeout in the banking sector (and one which is very badly needed for the long-term health of banking in the US). The excesses of the past 16 years simply have to be purged at some point.
When the 'Rats forced banks to make big-dollar loans such as mortgages to people with crappy credit (and, like as not, crappy character in a lot of cases) they knew perfectly well that the shjt would hit the fan one day.
That day is here.
I've been buying Lehman Jan 2010 puts for months. One of the best trades I've ever made, happy to say.
“””No kidding...with a heck of an opportunity to short that dog in Feb..at $10.””””
_____________________________________________________
The Japanese Candlestick charts tell the story, that little pop to $10 in February....if you look at the chart, it looks to be February 2nd....that type of candle is known as a “Gravestone Doji”. From the wonderful book “Japanese Candlesick Charting Techniques” by Steve Nison....”The gravestone doji’s forte is in calling tops, as we have discussed, many of the Japanese technical terms are based on military analogies. In candlestick literature it is said that the gravestone doji represents the gravestone of the bulls that have died defending their territory”
Check their Swiss and offshore secret accounts.
..didn't know they did that. Where can I find out more about this? Drudge should be all over this.
Why did Smugly Schumckly feel obligated to inform some and not all that the bank was being investigated?
We need another useless investigation into this mess.
Smugly Schumckly is a bloomin lib so nothing will be done for an ethics violation at the least and a conspiracy to save his buddies arses in the most.
Comment:
Did the stock charts say that the fed was investigating this company thereby letting all investors have equal opportunity to get the hello out at the same time?
Did the stock chart say the bank was going to be taken over on Friday, July 11 at six PM Eastern Standard time after the stock market closed so investors could not bail?
In liberals eyes Chuckie may be a hero but in my eyes the cockroach senator from New Yark is nothing but a grandstanding liberal arsewhole.
If I offended any PETA loving Cockroaches please forgive me.
A chart will tell you anything in hindsight, which is why chartists are so good at pointing out how good their charts were in the past, yet for some reason never tell you today what is going to happen in the future.
I believe officeholders put their assets in blind trusts on assuming office. They certainly should, if this is not the case.
It reminded me of the old vaudeville joke - about the man anxiously awaiting the results of his medical tests. His doctor enters the room looking at lab reports on a clipboard. After a few minutes patiently waiting as the doctor read the reports the man could wait no longer. He says “Doc, Doc - you gotta tell me, how am I?” The doctor puts down the clipboard and looks at the patient and says “Let me put it this way, any sudden shock could kill you!”
Denying the obvious. The problem is that the FDIC didn't act soon enough - and will suffer losses for not shutting this decrepit bank down a long time ago.
From the thread mentioned...
Chuck Schumer is Chairman of the Democratic Senatorial Campaign Committee. Take a look at some of the DSCC’s top donors so far :
Goldman Sachs $362,550
JPMorganChase $311,604
Morgan Stanley $169,450
Citigroup $146,250
Total: $989,844
IndyMac Bank $0
IndyMac does not even have a registered lobbyist in Washington, DC.
Old man Potter, in the person of Chuck Schumer, thought he would work his magic on seniors living on the income from their reverse mortgages.
Thanks Chuck, you’ve been helpfull!
Anybody remember the Bear-Stearns/JP Morgan fiasco? Read the article “The Secret Bailout of JP Morgan” by Ellen Brown on Mike Savages website. It is tremendous reading and extremely thought provoking. Then begin to wonder how many of Chuckies friends and contributors made a killing after this highly suspect letter went public.
This will get relatively little attention in the press, of course, as he has a D beside his name. If it was an R he’d have been forced to resign by now.
Why doesn’t someone post a few of Chuckie’s financial disclosure forms? There just might be a nugget or two in there.
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