Loden1111

IndyMac Bancorp Failure: Sen. Schumer vs. OTS

Senator Schumer certainly has responsibility for the general state of legislation concerning oversight and regulation of savings and loans. He very well could have sent a private and confidential letter to the Office of Thrift Supervision requesting comment on the status of a given bank or thrift. Instead, he publicized his letters.

I find it hard to believe that a sitting Senator would not realize the effect his public statements would have on any depository institution. The only reason I can imagine he would publicize such statements about an FDIC insured depository would be to embarass the sitting president and create a greater sense of doom and gloom. Given other public statements made in the past by Senator Schumer, it is well within the realm of possibility, in my opinion, that his political posturing has cost the FDIC a very substantial amount of money that the rest of us will wind up paying in the form of higher FDIC assessments over the next several years.

Even if he wanted to be out in front, he could have maintained the confidentiality of his concerns in communicating with the regulators. Then, if IndyMac failed, he could have released his letters as proof he was on task.

Shame on you Senator!