California’s Attorney General is mulling a request from former IndyMac employees to investigate New York Senator Chuck Schumer over his role in the bank’s collapse.
As the IndyMac’s situation deteriorated, Schumer sent a public letter to the FDIC in which he suggested that the bank’s position was tenuous. Many feel that the letter helped precipitate a bank run in which depositors took out $1.3 billion in funds over the space of 11 days, the third largest bank failure in U.S. history. Reuters:
In a letter to Attorney General Jerry Brown last week, 51 former IndyMac workers wrote: “From the day (Schumer’s) letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure became inevitable.”
Brown’s spokeswoman Christine Gasparac said on Wednesday that his office was reviewing the letter and that a decision on whether to act on it could be made as early as next week.
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