Source: CNBC
How Chuck Schumer Caused the Second Largest Bank Failure in US History
by Jerry Bowyer • Saturday, 12 July 2008
Federal officials aren't supposed to cause bank runs. In fact, much of the New Deal bank regulatory apparatus was set up for the purpose of eliminating such panics. When FDR was hit with a massive set of bank runs shortly after taking office, he gave an address in order to calm terrified depositors, assuring them that the banks would reopen shortly, and that everything would be fine. 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 was not a coincidence. Director Reich concluded that Senator Schumer had 'given the bank a heart attack'.
Why? Why would a federal official with enormous power, destroy an institution on which tens of thousands of depositors (not all of whom are insured) and employees depend? Why would a New York Senator attack a Pasadena bank, acting as some sort of amateur, self-appointed, long-distance bank examiner?
Perhaps this might help answer the question: Indymac has been under attack from the hard left. The Center for Responsible Lending [AD note: hedge fund billionaire John Paulson invested $15 million in the leftist non-profit, Center for Responsible Lending] issued an attack on Indymac within a few days of Schumer's letter. CRL is part of a small army of left of center 'research' groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.
Please go to CNBC to read the entire article.
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Source: The Ugly Truth
Senator Chuck Schumer denies that his leak of IndyMac letter wasn't a factor in bank's failure
March 18, 2019
Regulators pinned a large part of IndyMac's collapse on Schumer's June 26 letter causing alarm with depositors, leading to the run on the bank that essentially sapped it of the liquidity needed to continue functioning properly.
ed note–please note the very interesting items surrounding this event–
1. The typical posture that powerful Zionist Jews maintain in denying any culpability in their own actions, and even when it is apparent to all but the willfully blind or criminally complicit that they are at fault,
as well as–
2. Schumer's VERY prominent use of the term '911' in trying to exculpate himself from the very personal and prominent role he personally played as a co-conspirator in trying to implode the US economy in mid-September of 2008 as part of the '9/11 Redux/Re-do' in trying to jump-start the 'war on terror' that began to wane in the closing days of the GWB administration.
Sen. Charles Schumer on Sunday defended himself against claims by regulators that he was to blame for a run on IndyMac that led to the bank's collapse and takeover by the government Friday.
At a news conference Sunday, the New York Democrat deflected blame cast upon him by regulators for causing a run on the bank that saw depositors withdraw more than $1.3 billion during the 11 days after Schumer released a letter about the possible risks of IndyMac failing.
"The regulator here was asleep at the switch," Schumer said. “The administration is doing what they always do, blaming the fire on the person who called 911."
Schumer noted his letter in late June provided "no new revelations” about IndyMac, and instead pointed out the bank's problems had been building for years.
On Friday, the Office of Thrift Supervision transferred control of IndyMac to the Federal Deposit Insurance Corp. because it did not think the lender could meet its depositors' demands.
IndyMac is one of the largest financial institutions to close in U.S. history.
Regulators pinned a large part of IndyMac's collapse on Schumer's June 26 letter causing alarm with depositors, leading to the run on the bank that essentially sapped it of the liquidity needed to continue functioning properly.
During the housing boom earlier in the decade, IndyMac was one of the largest lenders of alt-A loans — mortgages given to customers with minor credit trouble or that did not have the proper documentation to receive a traditional, prime loan.
Schumer was quick to point out Sunday that IndyMac was much more involved in originating riskier mortgages than traditional community and regional banks.
Defaults among alt-A mortgages, like many other nontraditional loans, rapidly increased over the past year, forcing banks like IndyMac to set aside more money to cover defaults.
It also made it difficult for IndyMac to sell pools of mortgages — known as mortgage-backed securities — because investors shied away from bonds backed by the troubled loans. That left IndyMac searching for new ways to generate capital to continue operations, as it relied heavily on the mortgage securities market to raise funds.
John Bovenzi, FDIC's chief operating officer and IndyMac's new chief executive, said standards should be implemented to ensure other banks don't make the same mistakes.
The bank is scheduled to reopen Monday as IndyMac Federal Bank, FSB, under the oversight of the FDIC.
The FDIC estimates its takeover of IndyMac will cost between $4 billion and $8 billion.
The FDIC set up a help page and telephone number IndyMac customers can call with questions regarding their deposits.
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Related:
IndyMac Attack: Did Schumer, Paulson, Soros, and the CRL Kill the Bank and Profit From Its Collapse?
California mulls probing senator over IndyMac crash
Soros, Dell Join Flowers in Purchase of IndyMac
Liberal Billionaire George Soros… Major Shareholder in IndyMac/One West Bank
A Brief History Of Goldman Sachs, The Most Hated Bank In The World
Posted from my blog with SteemPress : https://www.abeldanger.org/judaic-ascendancy-of-power-2008-takes-down-indymac-bank-schumer-jump-starts-the-war-on-terrorism/