phlash79

Who's to Blame for IndyMac's Failure?

Schumer could have simply stated that a number of regional banks were at or near insolvency...it was with great amount of idiocy that he mentioned an institution by name...regardless of any speculation the fact remains that with the publishing of his open letter depositors with drew 1.3 billion from INDYMAC...I don't know what reserve ratio is required but the bottomline it represented something over 6.3% of their assets plus it drove down their stock price and associated market capitalization...I agree it was like yelling "fire" in a crowded theater and you have to ask yourself...who benefitted by creating panic? How much additional fear has the "self fulfilling" prophecy caused by Schumer going to create? How many more financial institutions will now see a similar run creating the proverbial snowball effect?

At best Schumer should be censured for poor judgement and investigated for using his office and authority for potential abuse and maybe even outright monetary gain...

With that said...he had a responsibility to make the case for appropriate oversight...but he has been head of the committees and in the offices mentioned in the above article for what "two years"?

Draw your own conclusions from there as to who is doing their jobs...