Chuckles Schumer: No Laughing Matter
Bank Lawyer’s Blog:
It’s a tossup as to what was more intemperate: Senator Charles Schumer’s public leaking of his letters to federal bank regulators that expressed his alleged concern that federal thrift IndyMac might fail, or certain public reactions to it. As reported by The Wall Street Journal (among other sources), “IndyMac said news reports of that letter sparked withdrawals of about
$100 million of deposits at IndyMac’s savings bank Friday and Saturday.
That was about 0.5% of total deposits, IndyMac said.”
Reaction from current and former bank regulators was harsh. According to the Los Angeles Times, “[t]heir message, distilled: Zip it, Chuck.” John Reich, OTS Director, told Schumer that he could take his request for public data on IndyMac and stick it where the moon don’t shine.
“As a regulator of insured depository institutions, we do not publicly
comment on the financial condition or supervisory activities related to
open and operating institutions,”…