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July 12, 2008
Chuck Schumer, Super Genius
The unbridled arrogance of this man never ceases to amaze or entertain.
Except now he's cost us billions
The federal government took control of Pasadena-based IndyMac Bank on Friday in what regulators called the second-largest bank failure in U.S. history.Citing a massive run on deposits, regulators shut its main branch three hours early, leaving customers stunned and upset. One woman leaned on the locked doors, pleading with an employee inside: "Please, please, I want to take out a portion." All she could do was read a two-page notice taped to the door.
...Federal authorities estimated that the takeover of IndyMac, which had $32 billion in assets, would cost the FDIC $4 billion to $8 billion. Regulators said deposits of up to $100,000 were safe and insured by the FDIC. The agency's insurance fund has assets of about $52 billion.
IndyMac's failure had been widely expected in recent days. As the bank was shuttering offices and laying off employees to cope with huge losses from defaulted mortgages made at the height of the housing boom, nervous depositors were pulling out $100 million a day. The bank's stock price had plummeted to less than $1 as analysts predicted the company's imminent demise.
There was a massive run on the bank, which drained its assets away.
And what caused that run? Glad you asked:
IndyMac, which once employed 10,000, fell prey to a classic run on the bank, and regulators singled out Sen. Charles E. Schumer (D-N.Y.) as having helped to fuel massive withdrawals. On June 26, Schumer said in letters to the FDIC, the OTS and two other federal agencies that IndyMac might have "serious problems" with its loan holdings."I am concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers," he wrote. The bank "could face a failure if prescriptive measures are not taken quickly."
That public warning prompted depositors to pull $1.3 billion out of accounts between June 27 and Thursday.
This damn attention whore, seeking the spotlight once again now that Hillary's star has faded, decided to try his hand at self-fulfilling prophecy.
Thanks, Chuck.
Posted by Mr. Bingley at July 12, 2008 07:57 AM
Comments
Good to know he's on OUR side!! They don't call it upChuck for nothing.
Posted by: tree hugging sister at July 12, 2008 10:05 AM
There are times when I wonder why we bother having Congress in the first place; it's like funding the ultimate daycare center for juvenile delinquents.
Posted by: The_Real_JeffS at July 12, 2008 10:48 AM
He is the kind of person that would do it on purpose too, and even he isn't so stupid as to not know that it would cause a run on the bank.
But he's immune from any blame because he's a senator.
More proof of the need for term limits.
I think we should do like the Athenians and ostracize politicians that have gotten too powerful. Ship them out of the country for ten years and put all their property in a trust while they're gone.
Posted by: Skyler at July 12, 2008 01:12 PM
He probably was pissed because he didn't get the toaster he was promised for opening a "Holiday" Account.
Posted by: Jim - PRS at July 12, 2008 01:27 PM
Why put their property in a trust, Skyler? Liquidate it, and put the proceeds against the national debt. The bastards can start fresh upon their return, using whatever they scammed during their exile.
Posted by: The_Real_JeffS at July 12, 2008 01:40 PM
Because that's essentially how the Athenians did it. I was just using modern terms to describe their methods.
Posted by: Skyler at July 12, 2008 03:17 PM
Hmm, Chuck Schumer as King Leonidas (as no one's made an Athenian movie yet.).
I'll never forgive you for that image, Skyler.
Posted by: tree hugging sister at July 12, 2008 05:44 PM
Um, Leonidas was a Spartan. The Athenians were famous for greasy politicians.
Posted by: Skyler at July 12, 2008 08:19 PM
They're all Greek to her, Skyler.
Posted by: Mr. Bingley at July 12, 2008 10:45 PM
Skyler, I'm gonna KYSLA. Duh. Let's reread what I wrote:
...as no one's made an Athenian movie yet...
I knew you'd be all over it and attempted a blocking maneuver.
But IT...
...was wasted...
...OY.
Posted by: tree hugging sister at July 12, 2008 11:38 PM
And you, Bingster bro-ster, are entirely correct. All studly Mediterranean muffins in loincloths look the same.
But I'm ashamed of that and am hoping to change. I figure if I learn to speak Spanish it'll make amends. Yo.
Posted by: tree hugging sister at July 12, 2008 11:42 PM
Because that's essentially how the Athenians did it.
Nothing wrong with tweaking models, Sklyer. Who knows? We might actually improve on what the Athenians did.
Posted by: The_Real_JeffS at July 13, 2008 01:34 AM
Nothing wrong with tweaking models, Sklyer.
I don't know; Sis got thrown out of a place one time for pinching the waiters...
Posted by: Mr. Bingley at July 13, 2008 09:18 AM
I don't know; Sis got thrown out of a place one time for pinching the waiters...
I've seen it! Those poor girls in McGuire's...
:)
Posted by: That 1 Guy at July 13, 2008 10:22 AM
Heh! Then you're safe, Mr. Bingley!!!
Posted by: The_Real_JeffS at July 13, 2008 11:54 AM
Isn't Bingley her brother?
Posted by: Skyler at July 13, 2008 01:11 PM
Somehow, this thread went very, very wrong...
Posted by: Ken S, Fifth String on the Banjo of Life at July 13, 2008 04:32 PM
OH, you HEAP funny, Chief Running Tab.
And WHAT are you IMPLYING, Skylurk?
Posted by: tree hugging sister at July 13, 2008 09:10 PM
We don't pinch in this family. We stab, smash, kick, punch, and drop ordinance upon; but we certainly never pinch.
Posted by: Ebola at July 14, 2008 09:38 AM
That would be unseemly.
Posted by: tree hugging sister at July 14, 2008 10:54 PM