CNS: Schumer Partly Responsible for $1.3 Billion Run on Bank, Experts Say By Josiah Ryan
IndyMac Bancorp Inc. and the federal government’s Office of Thrift Supervision (OTS) have accused Sen. Charles Schumer (D-N.Y.), chairman of the Joint Economic Committee, of sparking a $1.3 billion run on IndyMac by releasing a letter predicting its failure.
The run by depositors resulted in one of the costliest bank failures in American history and a federal takeover of the loan giant on Monday.
Schumer, however, denied wrongdoing in a press conference in New York on Sunday and blamed IndyMac for “irresponsible” action that led to its demise. He also suggested that the OTS be dissolved into another federal agency for its lax regulatory policies, which he said allowed IndyMac to act irresponsibly.
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Bert Ely, who is a principal at Ely & Company Inc. and an expert on monetary policy, told Cybercast News Service there is little doubt that Schumer’s letter was to blame for the bank run and Schumer knew what he was doing.
“This was an intentional action,” Ely said. “Schumer knew what he was doing. He has been around for many years, and he is a very smart man. He is bright. I won’t speculate on why he did it, but it was intentional.”
Ely added that he thinks the action was inappropriate for a U.S. senator. “Releasing the letter was not appropriate,” said Ely. “He should have communicated his concern privately. Instead he publicly threatened them.”
Naturally, this will all fall at Bush’s feet. Thanks Chuck!
Filed under: Crazy liberals , Charles Schumer, Crazy liberals, IndyMac Bancorp
