Regulators blame Schumer for Bank's Collapse
The Wall Street Journal had this today about Schumer:
But the Office of Thrift Supervision has been critical of Sen. Schumer for alarming IndyMac depositors, saying that in the 11 days following release of the letter, depositors withdrew more than $1.3 billion. OTS Director John Reich said Friday that Mr. Schumer sparked a deposit run that "pushed IndyMac over the edge." Publicizing the June 26 letters was "an unprecedented act," Mr. Reich told reporters Friday. He said Sen. Schumer should have privately addressed his concerns with regulators. . . .
Labels: CharlesSchumer, Regulation
posted by John Lott at 6:24 PM
2 Comments:
Senator Schumer should be reprimanded for his irresponsible act.
There were plenty of warnings about troubles at IndyMac starting last year. It shouldn't be surprise to anyone that they went bust.
It's very important for folks to be careful who they do their banking with nowadays. Back in March my wife and I moved our retirement accounts out of Citigroup after hearing negative reports about the bank and their involvement with the sub-prime mortgage meltdown. Today Bloomberg ran a story that said Citigroup has 1 trillion dollars in off-the-book deals. Creative accounting is not a good way to run any business.
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