Did Chuck Schumer cause the collapse of the IndyMac Bank?

It sure looks like he might have poured gasoline on the fire.

What Schumer did was make public a letter he wrote to FDIC Chairman Sheila Bair expressing concern for the bank. Since regulators were already monitoring the situation carefully, the letter apparently served only one purpose–to create publicity for Schumer.

The director of the Office of Thrift Supervision, John Reich, blamed IndyMac’s failure on comments made in late June by Sen. Charles Schumer (D., N.Y.), who sent a letter to the regulator raising concerns about the bank’s solvency. In the following 11 days, spooked depositors withdrew a total of $1.3 billion. Mr. Reich said Sen. Schumer gave the bank a “heart attack.”


“Would the institution have failed without the deposit run?” Mr. Reich asked reporters. “We’ll never know the answer to that question.” (Source)

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1 Comment

Filed under Business, Politics

One response to “Did Chuck Schumer cause the collapse of the IndyMac Bank?

  1. Pingback: California may investigate Schumer over IndyMac failure. « Dark Skies Blog

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