IndyMac Failure and Senator Schumer
The administration is doing what they always do, blaming the fire on the person who called 9-1-1.
~~ Charles Schumer ~~
After IndyMac bank failed a few days ago, some bank regulators tried to blame U.S. Senator Charles Schumer because before the run on the bank he had released a letter about the possibility that IndyMac might fail. In response to that accusation, the senator made the above statement.
I agree with the the senator. The bank failed because, like many other banks some of which have already failed, it indulged in high risk loans such as Alt-A loans where a borrower doesn’t have to document his or her income. Some people refer to such loans as “liars’ loans”. In other words, IndyMac acted more like a gambler rather than a bank. And the bank regulators woefully failed to reign it in. The release of the letter by the senator might have hastened the bank’s demise a bit but it certainly didn’t cause it.
And blaming him is certainly like ‘blaming the fire on the person who called 9-1-1′.