IndyMac Failure: How Much Trouble Is Sen. Schumer In?

Jul.12.08 | About: IndyMac Bancorp, (IDMCQ)

In case you missed it amidst all the news about the iPhone this week, there was bank failure news and debate about the illegality or legality of spreading rumors. In fact, my Dealbreaker colleague John got into the equivalent of a street fight with NYT wunderkind Andrew Ross Sorkin all about this. NYMag did a fine write up about it here. You can guess which side I come down on.

So, now that IndyMac has failed, and the feds have cited Senator Chuck Schumer in causing troubles for it, will he go to prison? After all, if it's illegal to prompt a bank collapse for monetary profit, why not ding him for doing this for his own political profit?