Sunday, July 13, 2008

How Chuck Schumer Caused the Second Largest Bank Failure in US History

How Chuck Schumer Caused the Second Largest Bank Failure in US History
"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’."

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