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Old 07-14-2008 | 08:51 AM
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Eric Stratton
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Originally Posted by miyagi
Not in the case of IndyMac. This man is going to cost this country a lot of money! Imagine what his "hot air" can do to the airline industry if he can have this kind of impact in financial market.

Schumer on IndyMac's failure: Stop blaming me! | Money & Company | Los Angeles Times


Sen. Chuck Schumer today went on another counterattack against federal banking regulators who’ve blamed him for helping cause the failure of IndyMac Bank.

Pasadena-based IndyMac, with $32 billion in assets, was seized by the government Friday. The loss-ridden mortgage lender had faced an outflow of deposits since Schumer on June 26 made public a letter he sent to the Office of Thrift Supervision and the Federal Deposit Insurance Corp., saying he was "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers."

Schumer’s decision to go public with those comments triggered a firestorm in Washington. Regulators on July 2 said he was contributing to "rumors and innuendo" about the bank that could hasten its demise.

On Friday, regulators specifically fingered Schumer for IndyMac’s failure. The Office of Thrift Supervision said in its statement announcing the seizure that "the immediate cause of the closing was a deposit run that began and continued" after Schumer went public with his concerns.

"This institution failed due to a liquidity crisis," OTS Director John Reich said Friday. "Although this institution was already in distress, I am troubled by any interference in the regulatory process," a reference to Schumer.
are you saying that it went under because someone raised concerns about their financial deterioration? that just sounds like he was getting it right. what am I missing here?