Posted on 07/13/2008 11:33:40 AM PDT by Dems_R_Losers
Federal officials aren’t supposed to cause bank runs. In fact, much of the New Deal bank regulatory apparatus was set up for the purpose of eliminating such panics. When FDR was hit with a massive set of bank runs shortly after taking office, he gave an address in order to calm terrified depositors, assuring them that the banks would reopen shortly, and that everything would be fine. But Chuck Schumer is no FDR. He doesn’t stop bank runs; he starts them. Or, at least, has started one. The collapse of Indymac bank, the second largest bank failure in American history, began with a letter from the office of Senator Charles Schumer on June 27. He questioned the viability of the bank. When a senior senator who is in a number of influential posts regarding oversight of bank regulators directly attacks the confidence of a depository institution, it matters. Not surprisingly, the director of the Office of Thrift Supervision concluded that the collapse of the bank immediately following the Senator’s comments has not a coincidence. Director Reich concluded that Senator Schumer had ‘given the bank a heart attack’.
Why? Why would a federal official with enormous power, destroy an institution on which tens of thousands of depositors (not all of whom are insured) and employees depend? Why would a New York Senator attack a Pasadena bank, acting as some sort of amateur, self-appointed, long-distance bank examiner?
Perhaps this might help answer the question: Indymac has been under attack from the hard left. The Center for Responsible Lending issued an attack on Indymac within a few days of Schumer’s letter. CRL is part of a small army of left of center ‘research’ groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.
A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network.
On the other hand, maybe it is a coincidence that CRL and Sen. Schumer attacked the same bank in the same week. Maybe he didn’t know about the CRL report, nor CRL about his letter. Maybe the community group didn’t know about the trial-lawyer class action lawsuit which was launched against Indy a couple of weeks before all of this started.
Yeah, right.
The political class is shifting left. We’re likely to get Obama and Nancy and Harry running the most advanced economy in the world next year. The investor class doesn’t like what it sees coming. That’s why it is scaling back. Capital is going on strike, and we won’t come back to the table until we see that we have a chance to a fair deal.
So how exactly did Schumer get them to make billions of dollars in mortgage loans to people who couldn’t possibly pay them back?
He caused a run on the back that took all the bank’s cash!
Viewpoint: Mortgage Mess Generates War of Entitlement
Chuckie Schumer: A posterboy for Upstate statehood.
By working to pass laws that make it possible to sue them for redlining if they didn't make those loans.
Schumer doesn’t do anything for nothing. What’s his payoff for killing the bank? More to come....
"I am concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers," he wrote. The bank "could face a failure if prescriptive measures are not taken quickly."
That public warning prompted depositors to pull $1.3 billion out of accounts between June 27 and Thursday.
Yes much better off hard work and Faith
more here:
Feds cite Schumer in collapse of IndyMac
http://latimesblogs.latimes.com/laland/2008/07/feds-cite-schum.html
He's not greedy, he's power hungry.
Bump to follow the story on this POS..
Enron claimed the same. Run on the bank.
Or at least he told his buddies.
If this doesn't smell like "insider trading" I don't know what does.
http://www.freerepublic.com/focus/f-news/2031535/posts
The looting of Fannie Mae by Democrat insiders
Wash Post ^ | 2006 | Wash Post
Posted on Sunday, June 15, 2008 5:01:42 PM by dennisw
By Jan 20 the haloed one could face the greatest financial crisis since 1932, all because of a deep seated suspicion that his economic and tax policies will make investment far less profitable, at the same time making governmnt control more prevalent and intrusive. Considering the hatred the left leaning haloed one has for earned wealth, his poor grasp of simple economics, and the identical opinions of his congressional partners, any solution he comes up with will worsen the crisis.
I think that Schumer ought to stick to policy, and stop trying to interject his opinions into the facts of specific cases like Indymac’s. Any fool could have seen that his comments would start a run on the Bank.
stalking dems_r_losers on this
just got a wsj alert on the fannie mae instability
NEWS ALERT
from The Wall Street Journal
July 13, 2008
The Treasury is expected later today to make a statement supportive of beleaguered mortgage giants Fannie Mae and Freddie Mac, according to people familiar with the matter. The exact language couldn’t be learned but is expected to be a statement of facts designed to reassure markets, people familiar with the matter said.
FOR MORE INFORMATION, see: http://online.wsj.com/article/SB121597057216549037.html?mod=djemalertNEWS
we’ll know monday if anyone buys the paper they are selling
Follow the money in the AM
mark levin discussed this friday on his radio show - you can listen to it at his web site free
http://marklevinshow.com/audio/
bookmark
BTW, IndyMac's steep decline began last year. All Schmuckles did by his letter and subsequent comments was to cost American taxpayers on the order of $8 billion, the non-FDIC-insured portion of IndyMac's deposits AND to deplete the FDIC insurance pool.
It violates Federal law to make public statements about a bank's solvency with a view to causing a 'run'. D'ya think Schmucky will be prosecuted for it?
This is the shape of things to come. The looting of America.
Little Chucky "the rumor" Schumer did all that? Second largest bank collapse in the ENTIRE history of the U.S?
(from poster sloop...)
dems_r_losers posted this in another thread:
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
.
.
IndyMac Bank $0
IndyMac does not even have a registered lobbyist in Washington, DC.
But that has just GOT to be a coincidence... right?
It still dropped 75% from $1.18 so there was plenty to be made. If you include after hours it was down 90%.
From the link:
Perhaps this might help answer the question: Indymac has been under attack from the hard left. The Center for Responsible Lending issued an attack on Indymac within a few days of Schumer’s letter. CRL is part of a small army of left of center ‘research’ groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.
A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network.
On the other hand, maybe it is a coincidence that CRL and Sen. Schumer attacked the same bank in the same week. Maybe he didn’t know about the CRL report, nor CRL about his letter. Maybe the community group didn’t know about the trial-lawyer class action lawsuit which was launched against Indy a couple of weeks before all of this started.
From the link:
Perhaps this might help answer the question: Indymac has been under attack from the hard left. The Center for Responsible Lending issued an attack on Indymac within a few days of Schumer’s letter. CRL is part of a small army of left of center ‘research’ groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.
A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network.
On the other hand, maybe it is a coincidence that CRL and Sen. Schumer attacked the same bank in the same week. Maybe he didn’t know about the CRL report, nor CRL about his letter. Maybe the community group didn’t know about the trial-lawyer class action lawsuit which was launched against Indy a couple of weeks before all of this started.
I hope this works. Savvy investors will lead the way.
|
And take a wild guess who pays the tab for bank failures??? When Freddie and Fannie hit the silk later this month, we taxpayers/suckers will foot that bill as well, while Chuckie and the rest of the far left both profit and inch closer to the long sought after Marxist takeover of the American economy/banking system.
I notice that some FReepers keep defending Schumer and his right to be a low life scum bag with peoples lives.
In my opinion whether or not Smucky did anything wrong in this case is still to be determined.
However, any determination of an agenda still does not negate the fact that he is an absolute arrogant arse in the mode of Eliot Spitballszer.
If this is true and there is evidence of proof, why is he not charged and or sued by the depositors and shareholders? Hopefully he will be held accountable, but then again, he is a criminally exempt Democrat.
The worse the economy gets, the better the chance of them getting elected.
Do you think the libs care about people's prosperity? Think again. They would rejoice at a depression.
A little know fact is that members of Congressional Committees are legally allowed to use this type of insider trading information in their own personal portfolio.
He didi not, of course. Who did, was Deval Patrick who when in the Justice Department under Clinton, extorted banks by threat of endless investigation and litigation to make loans to the "underserved", i.e. the deserving poor.
That is the root of all of this.
Schumer doesn’t do anything for nothing. What’s his payoff for killing the bank?
The dems want the economy to be as bad as possible before the election. Thats the only way the have a chance. They could care less about anyone losing there home, just that they gain power. People just done realize that important point.
I can’t believe CNBC published this.
Now it’s Chuckie Schumer?... yesterday it was Phil Gramm, maybe it all has been one big bi-partisan rip off.
To get his mug on camera.
“Schumer doesn’t do anything for nothing...”
I don’t buy that he just wanted to kill a bank to make W look bad. There has to be a personal gain in this malicious act for Schumer. Especially since his finger prints are all over starting a bank run. More to come..
my question is - why would he make his letter public? what was his motivation for that? what would be gained? who would benefit from it? who would be harmed?
i don't know that his motive was sinister - but i can't think of any reason to make that letter public - i’d like to hear someone explain the reason why he would make it public - what will his justification be?
Not a chance...
i did not know that - there should be an ethics rule that says the committee should have to place their money in a blind trust - but we know how effective that ethics committee is
i did know that difi was allowed to pass info from the military committee to her husband's business partner
as our esteemed house leader would say - ‘culture of corruption’
This isn’t about W. W is irrelevant being a lame duck. This is about gaining power in all branches of government by bringing the economy down with the stock market. Then they can make any kind of deals they wish.
And politicians wonder why they get no respect.
“Schumer doesn’t do anything for nothing.”
Actually, this may be about just that...nothing.
See post #10
http://www.freerepublic.com/focus/f-news/2044275/posts
Sen. Charles Schumer on Sunday defended himself against claims by regulators that he was partially to blame for a run on IndyMac Bancorp Inc. that led to the bank’s takeover by the government Friday.
At a news conference Sunday, the New York Democrat deflected blame cast upon him by regulators for causing a run on the bank that saw depositors withdraw more than $1.3 billion during the 11 days after Schumer released a letter about the possible risks of IndyMac failing.
“The regulator here was asleep at the switch,” Schumer said. “The administration is doing what they always do, blaming the fire on the person who called 9-1-1.”
We need an investigation to see if Bush is behind this...
Too bad we can cause a “run” on the Senate to shut it down.
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