Charles Schumer Administers Coup-de-Grace to IndyMac

Or,

If a Recession will not come to the US, the Democrats will send the US to the Recession.

Why did IndyMac Bank fail? Charles Schumer wrote a letter saying it was going to, and then published that letter, resulting in a 1.3 Billion dollar run on deposits over a two week period.

I don't know any lender that could remain solvent in the face of that.

From the Office of Thrift Supervision

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. The letter expressed concerns about IndyMac's viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."

Some are asking: Did Senator Chuck Schumer Cause Indymac Bank Failure?

The answer is, not by himself. He didn't force them out on a limb by making risky mortgages. But he certainly chopped off the branch they were sitting on. Many institutions in worse shape have survived to become profitable again.

Now if I knew one of my neighbors was struggling to survive, and hanging on but with decent to good prospects of making it back to health, I wouldn't go administering the coup-de-grace while there was that chance. But I'm not a Democratic politician trying to convince people that the economy is in trouble.

The Democrats want a recession so badly that they're willing to create one. Anticipated direct costs to the taxpayer of IndyMac's failure? Four to eight billion dollars. So that people will be mad at the President and vote in Democratic candidates..

More evidence:

Bloomberg: IndyMac Seized by U.S. Regulators; Schumer Blamed for Failure

seeking alpha:

Schumer's letter served no purpose because the FDIC and OTS were already closely monitoring IMB. The letter was only for public consumption, to create publicity for Schumer. The New York Times "Regulators Seize Mortgage Lender" reports Reich saying IMB's deposits were actually increasing before the letter was published, after which withdraws averaging $100M a day started ($1.3B total).

Jerry Bowyer: How Chuck Schumer Caused the Second Largest Bank Failure in US History

Indymac has been under attack from the hard left. The Center for Responsible Lending issued an attack on Indymac within a few days of Schumer's letter. CRL is part of a small army of left of center 'research' groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.