Feds cite Schumer in collapse of IndyMac »
Posted by: jimdoze 1 month, 2 weeks agoSchumer shouts "FIRE" in the crowded IndyMac theater... and then shrugs it off as the regulators' problem. Or, shall we say that Schumer merely put a dagger through the heart of ailing IndyMac? Thanks, Chucky!
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jimdoze1 month, 2 weeks ago
Schumer shouts "FIRE" in the crowded IndyMac theater... and then shrugs it off as the regulators' problem. Or, shall we say that Schumer merely put a dagger through the heart of ailing IndyMac? Thanks, Chucky! That's one way to aid your case that more regulation is required. Putz!
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engineer1 month, 2 weeks ago
This is a long time result of the deregulation of the banks in 1981. If the regulations were still there, this could not have happened.
1. They could only look at one income
2. They had a maximum of 12% interest on any consumer loan.
3. They had to lend back to the community
4. There was only a 3% differential between interest taken in and given out.
5. There were tighter standards on borrowing and reserves.
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1-2-Oscar1 month, 2 weeks ago
Even more damaging to the people's interests was the 1993 repeal of the Glass-Steagal Act's restrictions on speculative investments by commercial (or savings) banks. Underminimg the US banking system has been a thoroughly bipartisan project. About the only thing that the two major parties can consistently agree on is that they will both take your money whenever they can.
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antibrainwasher1 month, 2 weeks ago
this is unpresidented swiftboating, there really is no end to what the republican insane blame it all on dems when their failed unregulation and greed blows up in their face swiftboaters.
Schumer was screaming for regulation for years, and the bush adminsitration did nothing to regulate the Enron style financial BS that we are now seeing ruin the economy, while tax payers are bailing out the investment firms that are responsible.
And now, they are blaming Schumer.
INSANE. INSANE. Republicans never accept responsibility. They are not the ones dying in Iraq for the war they ordered up to get rich in big oil and big military industrial complex.
Republican neocons: responisble for 4500 dead, 30,000 destroyed, and 10 times that many menally deranged and unable to support a family or hold a job.
Republican no regulation capatalists: responsible for Enron, Financial collapse of the mortgage financial market.
Now, its all Schumers fault. INSANE.
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Beau78901 month, 2 weeks ago
You know better, jim.
The Office of Thrift Supervision wants to make Schumer look bad, as he made them look bad by sending the June 26 letter.
It IS possible that the run was caused by that letter being made public. (Was Schumer the one who made it public? It's hard to tell from this article.)
At the same time, the problems Schumer discussed in his letter are still valid. If there hadn't been a run on IndyMac, it still would have been in a weak position because of poor regulation.
You're blaming the messenger for the real problem, which is that the financial industry is poorly equipped to deal with the demands of an economy that is weakened to the point that people need more liquidity. IndyMac's failure is a symptom of the state of the financial industry, which was caused by agencies like the OTS NOT doing their jobs.
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1-2-Oscar1 month, 2 weeks ago
Schumer did not mismanage the assets of Indymac Bank--the bank's officers did that.
Schumer did not fail to supervise the bank properly and act in a timely manner to protect the public--the FDIC is the agency at fault.
Schumer is a jerk, to be sure, but we need to give credit where credit is due--the Bush administration has proven itself incapable of managing any of its responsibi... when it comes to protecting the ordinary citizens.
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MRCOFFEECAKE1 month, 2 weeks ago
So Schumer can single handedly influence a run on the bank in
a state that always elects Bush-like Presidents, but our almighty President can't do anything for anybody on, gas prices, sub-prime loans, decaying infrastructure, breached levees, oil prices, failing schools, the falling dollar or any other matters of national importance...Hmmmmm.
maybe Schumer should be President??
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antibrainwasher1 month, 2 weeks ago
Did Murdock tell you to vomit that piece of crap up in public?
Schumer wrote a letter exposing the weakness in the bank, it was the insane lending practices of the republcian greed machine unregulated wallstreet investors that caused the bank colapse.
But, being a loyal republican, you blame the first dem you see from the site of the disaster.
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antibrainwasher1 month, 2 weeks ago
I have yet to read ANY republican shill with the stones to admit this economic collapse is the result of failure to regulate the unfettered greed of their economic policies, where the real estate speculators write the regulations.
I have yet to read any post of any republican shill who puts the intrest of the country ahead of partisanship. This disasterous trickel down, give the rich everything, theory that if the rich get rich, it a rising tide will raise all ships, is a FAILURE, a disaster. We will be lucky to avoid another Depression.
Where is any republican, any at all, the likes of Chuck Hagle, who will have the balls to accept responsiblity for this republican disaster, or all you all sniveling yellow bellied swiftboating ad hominem cowards.
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MajJohn1 month, 2 weeks ago
Schumer made himself look bad. No politician or other respected leader with a large following can make statements like he did without taking responsibility for the statement.
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lovermanComment removed: User banned.
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aniokly1 month, 2 weeks ago
The Democrats, and George Soros, and William Buffet are manipulating the market. You watch. Let's say Obama did win in November suddenly all will be fine with the economy. They did the same thing in 92. We were in the worse economy since the depression. Suddenly the Hillbilly *hore Hopper is elected, and everything is wonderful. We cannot trust Democrat to do what is right for the country, not ever
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dunkirk1 month, 2 weeks ago
ROFLMAO, Ani they're having a duct tape sale at menards this week, better stock up. its really strange how all thos dems seem to be controlling, well according to you, just about everything, gas prices, inflation, house prices, taxes, my god th elsit goes on and on. So what you;re trying to say electing Republicans is a waste of time since even when they have control they cant do anything anyway?
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antibrainwasher1 month, 2 weeks ago
Republicans have shown with out ANY doubt, they are incapable of regulation of the economy, of governing.
They have NO Business in government, they do NOT represent the voters, the citizens.
Republicans are incapable of governing. They are incapable of policing their own hard right hard meglomanaic insanely greedy lying criminal financial sector, who would gladly kill thousands to accomplish their financial goals for the quarter. And did.
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Formidable1 month, 2 weeks ago
It seems that he used the old Ready - Fire - Aim approach that has brought us such marvels as ethanol and high food costs.
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MRCOFFEECAKE1 month, 2 weeks ago
yes, and it was a mistake.
But Bush has had the support of South Dakota, North Dakota, Oklahoma, Nebraska, Kansas, Iowa, Idaho, Wyoming, Montana,
Western Pennsylvania, Indiana and Minnesota corn farmers who have depended on him to make it happen, and he didn't disappoint them, did he??
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Will13131 month, 2 weeks ago
http://www.sptimes.com/2007/03/05/Worldandnatio...
I didn't know Jeb Bush was a LIBERAL..... thanks for the info...
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Beau78901 month, 2 weeks ago
That's funny. "Ready, Fire, Aim" is the approach used by the White House in its war on terror. I thought conservatives admired that approach.
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canadianrancher571 month, 2 weeks ago
Politicians who choose not to show some responsibility at times can cause so much damage, which sort of is the case here.
When it comes to this morgage crisis alot of the blame has to go back to not banks or government but to people. People complained about not being able to afford a house and builders complained about a slow down in building, if people and business had shown some patience this would have sorted itself out without changes to getting morgage. People have got to stop yelling " you gotta help me" at the government, I don't think that it is the governments job to make sure everyone has a new house.
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antibrainwasher1 month, 2 weeks ago
Blame the messanger for insane unregulated repubican policies.
We now know without any doubt that republicans are incapable of policing the hard right extremists in their own ranks who would destroy and rape the entire economy and planet to enrich themselves.
What is pathetic, is the yellow bellied cowards are blaming Shumer and the Dems for the steaming stinking pile of crap they created.
Yellow bellied coward coniving scheming greedy lying republicans. But don't worrry, jesus loves the rich.
Evangelicals, its time for your army of baby jesus lovin' gun totin', flag wavin', anti-abortion votin', gay hatin', inbred red state morons to step up. Don't just support the hard right deregulationist capatalists billionaire wanabees when their raping the economy, swiftboat for them while their down too. Don't be a fair weather brownshirt.
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Endoscopy1 month, 2 weeks ago
No. Put the blame where it belongs. The liberals that are bleeding hearts for the poor wanted the regulations loosened up so the poorer people could buy homes. Sounds nice. Problem it they are subprime for a reason. It is the possible problem of paying the loan. Smarter banks took lesser risks when issuing the loans. More foolish ones took bigger risks.
The smart banks are having a failure rate low enough for the increased interest to pay for the failures. Foolish banks are having a higher rate of failure and are having major problems.
Of course the Liberals want to give money to someone to prevent people who can't pay for a house to have one. Typical liberal concept. Cause a problem with a bleeding heart cause and then throw money at the problem they create.
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SonOfTheMask1 month, 2 weeks ago
This guy's comment on the LA Blog makes sense to me:
It seems like there are a lot of uninformed comments being posted here. NO BANK can withstand a large portion of its depositors taking their money out over a short period of time. Your deposit money isn't just sitting in a vault somewhere. The bank loans it out so that it can pay YOU interest. Banks are only required to have enough liquid capital to handle normal operations plus some reserve. Schumer created a run on the bank with his inappropriate comments and that's what caused it to fail.
Posted by: Lance | July 11, 2008 at 10:27 PM
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SonOfTheMask1 month, 2 weeks ago
Very true, tehranchik. It's nice to see we're in agreement on something beyond good sci-fi... :)
To support operations and turn a profit banks make money on the spread in the interest they charge on loans versus the interest they pay on deposits and investments...plus all those service fees they charge for seemingly everything.
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antibrainwasher1 month, 2 weeks ago
Schumer created a run on a bank? What a pantload. The bank failed, like about 300 other banks are going to fail, because of Bush regime policy unregulation, EXACTLY LIKE ENRON.
This blame schumer is classic swiftboating, taken to a policy level in the republican lying irresponsible regime.
Swiftboating as policy. Vote republican.
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SonOfTheMask1 month, 2 weeks ago
Here are some articles for you to read:
http://biz.yahoo.com/ap/080701/indymac_schumer....
http://www.cnbc.com/id/25654303
http://theoath.wordpress.com/2008/07/14/impeach...
http://gatewaypundit.blogspot.com/2008/07/feds-...
Regardless of the underlying issues at IndyMac, Schumer's letter was irresponsible. Blaming him for being irresponsible in sending the letter is not the same thing as saying that he caused the underlying credit issues.
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tbkennedy531 month, 2 weeks ago
Swiftboating (as you call it) was a group of people who served with Carey and then put out statements about first hand experience. How does that apply here Brain?
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stephen-johnson1 month, 2 weeks ago
I doubt that Chuckie Cheese would have published a similar letter to Bear Stearns or Merrill Lynch - after all, the mess from those bank failures would have been in his own backyard.
Schumer is one of the most self-centered persons ever to hold a senate seat. Getting his ugly mug on the air takes precedence over the 10,000 Indy depositora who lost half a billion dollars in non-FDIC insured deposits. Way to go, Chuckie!
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stephen-johnson1 month, 2 weeks ago
IndyMac was in no danger of failing until Chuckie Cheese opened his big mouth, causing a run. It's probably in better shape than Citigroup - why didn't Chuckie Cheese send his letter to them?
Oh, Citigroup is based in NYC. And it's a big time contributor to Chuckie Cheese.
"That's the new American way, isn't it?"
No, the new American way is for politicians to create problems rather than solve them.
Try telling the woman who had $300,000 of her life's savings in IndyMac that losing $200,000 of it is no big deal. No doubt all you class envy types think that she has too much anyway.
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antibrainwasher1 month, 2 weeks ago
Wow, this is well orchestrated swiftboating, by a pack of republcian shills, blamiing the messanger and attacking Schumer for the failed regulation of the financial sector under their watch.
Swiftboating taken to a policy level. They had this ready to go before the colapse. Its coming from the heratage foundation or the American Enterprise Institute, who's tenacles extend through ALL the american media, ownership and management.
The republican machine in action, right here on propeller. They have a new straw man, Schumer.
The republicans are incapable of governing, of regulation. The republicans failure of governance and failure to police their hard right super rich moguls have caused this financial disaster, of golbal porportions.
and they are managing to blame the messanger.
Insane, and a massive display of cowardice.
Is there no republicans ouit there who will accept responsiblity for their actions?
Is Chuch Hagle the ONLY decent republican?
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jovial1 month, 2 weeks ago
Good job, Schumer! We citizens should know about these banks in trouble. Hiding this information doesn't give ordinary guys a chance. Right before the bank gets ready to fail, you better believe it's leaked to the right people. They get there money out and the taxpayers get stuck with the bailout!
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amazed1 month, 2 weeks ago
well, except that, if a failing bank is handled discreetly, the depositors will not make a run on it. Often, buyouts are engineered which, admittedly, further reduce banking choices which are already quite slim, but the buying bank has to honor the failing banks deposits, so it's a win for all.
However, announcing that a bank doesn't have enough money to cover its deposits (and, really, what bank ever does?), will send some people into a panic. They run in and close their accounts. While, the majority might be inclined to sit tight, as they see more and more of the panicked closing their accounts they get worried, too, and they close their accounts. It spreads like a cancer and before long (I think banks only have to have something like 5 -10% of their assets liquid) they can't give the cash that their customers are demanding and, poof, they failed and each account holder gets no more than the FDIC or the FSLIC will pay -- I think $100K per depositor.
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flyonthewallzz1 month, 2 weeks ago
With these actions and with declining quarterly losses, we forecast that our capital ratios will improve throughout the remainder of the year and that we should remain well-capitalized throughout this crisis, although we can make no guarantees that that will be the case. The bottom line is that, while we have made a lot of progress in converting our business model, reducing our losses and keeping Indymac safe and sound despite being at the epicenter of this credit crisis, the housing and mortgage markets remain volatile and uncertain, forecasting remains very challenging, and our actual results could be materially different than our current forecast.
SEC filing 8-K May 12 2008
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DarkWizard1 month, 2 weeks ago
flyonthewallzz,
I had to laugh when I read that filing! It is the typical double talk ****** I would expect from a big corporation that is trying to cover its ass.
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flyonthewallzz1 month, 2 weeks ago
INDYMAC: WHAT WENT WRONG?
CRL Report Mike Hudson
June 30, 2008
http://www.responsiblelending.org/pdfs/indymac_...
this may be bit long.
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antibrainwasher1 month, 2 weeks ago
I have yet to read ANY republican shill with the stones to admit this economic collapse is the result of failure to regulate the unfettered greed of their economic policies, where the real estate speculators write the regulations.
I have yet to read any post of any republican shill who puts the intrest of the country ahead of partisanship. This disasterous trickel down, give the rich everything, theory that if the rich get rich, it a rising tide will raise all ships, is a FAILURE, a disaster. We will be lucky to avoid another Depression.
Where is any republican, any at all, the likes of Chuck Hagle, who will have the balls to accept responsiblity for this republican disaster, or all you all sniveling yellow bellied swiftboating ad hominem cowards.
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antibrainwasher1 month, 2 weeks ago
The do nothing but let the greedy mogul driven markets regulate themselves policy and republican (capitalism as a religion) policy is a total failure, trickel down is a disaster, reganeconomics is insane and a failure, giving the rich everything they want is unsustainable for a country.
Republicans have no business in government. They are incapable of governing. They are incapable of regulation of their insane right wing militant megalomainics who would destroy the entire country economically, bankrupt us all, for the chance of enriching themselves.
I have yet to see, read or hear ANY republican willing to admit this FACT.
This last 8 years of economic redistribution to the rich rampant greed anti-socialist policy is leading to another great depression, and all the republicans are doing is calling for more of the same.
Insanity is doing the same thing and expecting different results. Is there no end to the gullibility of republican voting non-millionaires?
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Endoscopy1 month, 2 weeks ago
Listen to a liberal whine in ignorance. He has had his brainwashing and refuses to allow it to be undone.
When has any liberal taken on the responsibility of the havoc some of their good intentioned programs have made?
Are you going to admit that there has been any problem with some Liberal programs? Somehow I don't think so. You just whine about things like you know what you are talking about.
I remember listening to CSPAN in the early days of it. Republicans were angry about the increasing deficit. Democrats just treated them like they were just an annoyance without any real intelligence. Now listen to them cry about it now. Maybe we need a Democrat president and congress to see how big of a deficit we can have.
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