ptgkc

Who's to Blame for IndyMac's Failure?

Unless your head was in the sand, everyone knew Indymac was going down. They made their bed years ago by issuing alt-a (liar) loans in California, the biggest real estate bubble in the country. The stock has been a slow motion train wreak for 15 months. When Schumer spoke, the stock was already down to 80 cents. And Schumer caused it. Right.

Managment is first to blame. They setup this house of cards.

However, Schumer (who I agree is a world class blow hard), is 100% correct that the regulators should have put an end to the shady business practices long ago. If I fault Schumer for anything, it's why did he wait this long to speak out?

As for John Reich, just look at his resume. While not a political hack and has plenty of banking experience (not a "hellava job" Brownie, from FEMA guy), he is a Bush appointee. His career was built in the Republican party, having spent 12 years on the staff of Florida Senator Connie Mack and worked his way up to basically chief of staff for his office. He is trying to cover his own a** and defending the boss that appointed his.

This administration believes in unregulated capitalism and the policy from the top down is to let businesses govern themselves. So agencies have a hands off policy. When businesses are not regulated - those who are reckless, unknowledgeable, or just greedy; will push to get away with whatever they can.