The Office of Thrift Supervision (OTS) has put out a statement blaming Democratic New York Senator Chuck Schumer for the collapse of IndyMac Bank. Schumer blames the federal regulators. Read about the unfolding drama below and see photos and a video.

There are accusations and indications that U.S. Senator Chuck Schumer (D-NY) contributed to the collapse of IndyMac Bank. He has acknowledged that some of his actions may have contributed to the bank failing and he regrets that people lost money. However, he is pointing his finger of blame to IndyMac first and to federal regulators second.

Schumer wrote letters in June warning of the possibility of IndyMac failing. In late June, the letters were made public and published in newspapers with headlines blaring that the bank was on the verge of collapse. The Office of Thrift Supervision has pointed out that bank customers withdrew more than $1.3 billion in the eleven days immediately following the release of Schumer’s letters. OTS says that publicizing his letters in the Pasadena newspapers alarmed the public resulting in a run on the bank which pushed it over the edge.

It gets worse. The American Thinker points out that Schumer is being accused of coordinating this attack on the bank with an activist group, The Center for Responsible Lending. Sounds like a conspiracy theory to me, except for the fact that IndyMac has been under attack by leftist groups for some time.

Indymac has been under attack from the hard left. The Center for Responsible Lending issued an attack on Indymac within a few days of Schumer’s letter. CRL is part of a small army of left of center ‘research’ groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.

A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network.

Its understood that a declining economy is usually a ticket for a change of power in Washington. Its like money in the bank for the democrats. The worse the economy, the better their chances of taking the White House. Surely they wouldn’t be that power hungry. Surely they wouldn’t throw the American people under the bus to gain power. Surely.

After all, Schumer said he felt bad about people losing money due to his political games. He does feel bad about it. Really.


Chuck Schumer is Blamed for IndyMac Collapse – Video