Feds Blame Chuck Schumer for IndyMac Collapse

The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

  Schumer (and his big mouth) is at least partly responsible for the collapseand subsequent federal takeover of Indymac. That is what happens when politicians stick their noses in where they don’t belong.