Liberty Just in Case

A Dialogue for the September 12th World

Chuckie Schumer Steps In It This Time…

Posted by Mark on July 12, 2008

and causes the 2nd largest bank failure in U.S. history.  What a guy!

IndyMac came under fire last month from U.S. Senator Charles Schumer, who said lax lending standards and deposits purchased from third parties left it on the brink of failure. In the 11 business days after Schumer explained his concerns in a June 26 letter, depositors withdrew more than $1.3 billion, the OTS said.

Liquidity Crisis

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

Interference. Read that as, Chuckie should keep his mouth shut.

But, Chuckie had a response:

Schumer blamed IndyMac’s own actions and regulatory failures for the seizure.

“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,” Schumer, a New York Democrat, said in an e-mail today. “Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs.”

Poor and loose. Sounds like a pretty good description of the senior Senator from New York.

Oopsie!

Oopsie!

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