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Investigation into Sen. Charles Schumer's role in the failure of INDYMAC Bank

By
Mortgage and Lending with INPAC Enterprise

Saw this in news release.

New York Times (08/22/08) A letter from 51 former employees of IndyMac Bancorp to California Attorney General Jerry Brown calls for an investigation into Sen. Charles Schumer's role in the failure of the Pasadena-based thrift. The former workers accuse the New York Democrat of contributing to the bank's collapse by leaking confidential information and questioning whether IndyMac could weather the mortgage crisis in a letter to the Federal Deposit Insurance Corp. (FDIC) and the Office of Thrift Supervision. In the letter to Brown, they write: "From the day Mr. Schumer's letter was made public until the closure of the bank, a run on the bank took place and the failure became inevitable." Over an 11-day period in July, depositors withdrew more than $1.3 billion from IndyMac, prompting a takeover by the FDIC.

I hope it comes out that Senator Charles Schumer is the head of the Senate Housing Committee and a member of the Senate Banking Committee. According to a Federal bureaucrat who stated to the news they had put INDYMAC on the watch list before the Senator's letter which the Senator knew about.

Then why did he do it:

* Maybe he just wanted to feel important

* Maybe he had friends who had Options against INDYMAC and promised big campaign contributions to the Senator

* Maybe he wanted to help insure a continuation of the finance crisis through the Presidential Election He should be held responsible.

Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Sounds like "D" all the above took place. I'm not a big fan of Senator Schumer...

Aug 22, 2008 05:45 PM
Kirk Williams
Private Venture Capital - Everett, WA

The senator is a "poser" a political hack and what I mean by that is he is a self promoter for self preservation to maintain a high profile. The Indy-mac thing is baffling. Why would he even care about a bank that was NOT on any watch list and located a few states over from his? They were targeted by him and who put him up to it? That is a very interesting question. He is not that smart and would have nothing to say about it unless it was put in front of him.

Frankly both sides of the isle are guilty of "stupid" but between Chuckie, Barney (I have been asleep for 20 years)Frank and Chris (thanks for giving me a really really good deal Countrywide) Dodd it is very clear they are creating noise more than substance. They should be focusing on Wall Street where the loans come from but no they are now wanting to regulate loans to the point where they (congress) will now underwrite your loans since they know best.

Don't forget the other self promoter, the attorney general from NY Cuomo the guy who thinks it was the appraiser that is to blame for this calamity we face. I think he is starting his 2012 run for president. Look for Chuckie too!

Cuomo was the Secretary at HUD under Clinton and is the same guy that thought it was OK for builders to own their own mortgage companies. Look at the five states with the highest foreclosure rates and you will find the builders with "their" lenders. They put folks into the exotic loans and many didn't even make their first payment (had nothing to do with rate re-sets) but the builder got paid. Seems like a good deal for them. Just a thought.

Sorry about the rant but you can't regulate stupid and bad behavior. Besides with all the bad behavior going on in DC how could you expect a good result?

The consumers are getting screwed again. I hope you didn't have Indy-mac in your retirement folks and I hope you pay attention to how you vote this fall. Sure there was bad behavior in the lending world too but where was the oversight.....where was the SEC....how could a 560 credit score turn into a SIV (sophisticated investment vehicle) and be traded over and over again because after all it was rated AAA? !!

Thanks for listening. Great post.

Aug 22, 2008 06:29 PM
Vicente A. Martinez
Prudential Douglas Elliman Licensed Real Estate Salesperson - Woodhaven, NY
Realtor, Brooklyn - Long Island - Queens Homes

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Aug 22, 2008 06:39 PM
Marcy Fedalei
Keller Williams Realty - Spartanburg, SC

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Aug 22, 2008 10:52 PM
Sasha Miletic - Windsor Real Estate
RE/MAX Preferred Realty Ltd. - Windsor, ON

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Aug 22, 2008 11:17 PM
Ron Martin
Keller Williams Realty - Spartanburg, SC
Ron Martin Team

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Aug 23, 2008 12:42 AM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

 

Welcome to ActiveRain!

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Aug 23, 2008 12:54 AM
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

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Aug 23, 2008 02:21 AM
Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate

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Aug 23, 2008 02:25 AM
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Prudential C Dan Joyner and Young Realtors - Spartanburg, SC

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Aug 23, 2008 05:08 AM
Patricia Fisher
Keller Williams Realty - Spartanburg, SC

Welcome to the Active Rain Community!  This is a great site to network, learn, and share ideas with others.  Have a great day!

Aug 23, 2008 08:05 AM
seller seller
Realestate - Greenville, SC

Welcome to Active Rain, Enjoy and have fun with it.

Aug 23, 2008 09:07 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Aug 23, 2008 11:42 AM
Brooke English
Credit Restoration Consultants - Lake Placid, FL

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Aug 23, 2008 11:44 PM
Steve Vennemann-Hennepin-Dakota-Anoka contract for deed property-Ramsey-MN
BoardWalk Premier Realty INC - White Bear Lake, MN

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Aug 24, 2008 02:36 PM