Sen. Chuck Schumer (D) causes run on IndyMac Bank

Shmucky Schumer -- Sen. Chuck Schumer and the IndyMac Failure

By The Neville Awards
Posted July 12, 2008

There is a special place in hell reserved for liberal low-lifes like the "esteemed" senator from New York and Neville Award winner, Sen. "Shmucky" Chucky Schumer.

"Shmucky" (with apologies to Mark Levin) Schumer sent warning letters to the Federal Deposit Insurance Corp., the Office of Thrift Supervision, the Federal Housing Finance Board and the Federal Home Loan Bank of San Francisco. The letters reportedly said Schumer is concerned IndyMac "may have serious problems with its current loan holdings, and could face a failure if prescriptive measures are not taken quickly."

Chuck the Shmuck is either so stupid that he didn't know his letters to the FDIC would cause a run on the bank or he is so obsessed with having Barack Obama win in November he would deliberately collapse a bank that was already teetering so the failure could be blamed on the Republicans. With the mainstream press already in the tank for Obama the bank failure could easily be blamed on the Republicans.

Well, the letters immediately caused a run on the bank. IndyMac had already racked up almost $900 million in losses as home prices tumbled and foreclosures climbed to a record. IndyMac became the largest OTS-regulated savings and loan to fail, according to the FDIC.

It is very possible that IndyMac might have failed anyway. They were engaged in some very dubious practices like giving “Alt A” loans (loans in which the borrower is not required to provide proof of income).

But there can be no doubt that the immediate failure of IndyMac was caused by the despicable actions of this publicity seeking, grandstanding, lib loser, who, like all liberal politicians, was far more interested in what might be gained politically from the bank’s failure than he was about what the failure might mean to the bank's stockholders, employees, and customers.

Chuck the Shmuck Schumer’s actions were reckless and inexcusable given his position on the Senate Banking Committee and this screams censure and investigation.

Shmucky’s actions brought a strong rebuke from OTS Director John Reich, who said:

"This institution failed due to a liquidity crisis, although this institution was already in distress, I am troubled by any interference in the regulatory process."

Chuck the Shmuck blamed IndyMac's own actions and regulatory failures for the bank seizure.

"If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," Shmucky sniffed in an e-mail yesterday. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs. Mr. Reich, a political appointee, should be spending less time playing politics and more time doing his job."

What unbelievable arrogance on the part of the "esteemed" senator.

One wonders, beyond the obvious boon to Obama, if Chucky has been selling IndyMac stock short, or if he has had any business dealings with New York based Aurelian Management, LLC or it’s president, Brian Horey. Aurelian was short-selling IndyMac shares to gain from declines in the days prior to this takeover by Federal Regulators.

At this point nothing would surprise us here at The Neville Awards.

www.nevilleawards.com/schumer.shtml