Posted by
Roxanna M. on Saturday, July 19, 2008 9:37:42 AM
Come on, is there any question. How could anyone top Sen. Charles Schumer (D-NY)?
It has often been remarked that the most dangerous place in America is anywhere between Schumer and a TV camera. The man's a glory hound, no doubt about that. Apparently, the face he sees in the mirror is a heckuva lot different than the face we see on TV. If the man had an ounce of decency, he would stay in the background and quit inflicting himself on us. Alas, that is not to be.
On June 26, 2008, he wrote a letter to the Office of Thrift Supervision (OTS) and to the Federal Deposition Insurance Corporation (FDIC) in which he stated that IndyMac Bank was having some problems. Not satisfied with leaving it at that, he "leaked" that letter to a friendly press.
In the 11 business days following that leak, depositors withdrew more than $1.3 billion from their accounts. Not surprisingly, the bank had to close its doors. IndyMac Bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history.
The OTS said, "The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York." At a press conference, John Reich, the director of the OTS, called Schumer's release of the letter "an unprecedented act" and accused the senator of pushing the bank "over the edge." Adding, "The institution failed today due to a liquidity crisis. Although this institution was already in distress, I am troubled by any interference in the regulatory process."
On July 1, IndyMac Bank released a statement claiming that Schumer's letter had "elevated customer inquiries and withdrawals." Bert Ely of Ely & Company, reckoned to be an expert on monetary policy, said, "This was an intentional action. Schumer knew what he was doing."
Hans Bader of the Competitive Enterprise Institute said, "It seems clear that Senator Schumer's comments did trigger the bank's collapse and did make it happen as soon as it did. I don't know whether it would have collapsed if he had not made the comments he did or when."
Also not surprisingly, Chuckles is not taking any responsibility for his actions. Of course he's not. With democrats, as with children (I'm being redundant, I know), nothing is ever their fault. They are never wrong. They are never to blame. They are never responsible.
Somewhere, Mr. Schumer is mutinously sticking out his lower lip, crossing his arms across his chest, and saying, "Uh-uh".