Did New York Sen. Chuck Schumer start a run on IndyMac (IMB) by scaring the bejesus out of depositors? Despite his critical letter that called into question the “viability of the institution”, Schumer, obviously, says no. Here are some choice quotes from the Senator as he tried to play the spin game on Sunday:
- “And now they are doing what the Bush administration always does: blame the fire on the person who calls 9-1-1.”
- The Office of Thrift Supervision was “asleep at the switch” when it came to IndyMac’s “reckless” behaviour
- “OTS ought to stop pointing false fingers of blame and start doing its job to protect the future of the banking system, so that there won’t be other IndyMacs,”
- “IndyMac was one of the most poorly run and reckless of all the banks.”…”It was a spinoff from the old Countrywide, and like Countrywide, it did all kinds of profligate activities that it never should have. Both IndyMac and Countrywide helped cause the housing crisis we’re now in.”
- OTS is “known as a weak regulator,” and “my job was to try and toughen them up and that’s what I tried to do.”
Good points! But unless the regulators are lying, your letter still started the stampede.
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