Schumer Defends Comments on IndyMac Collapse
Monday, July 14, 2008
New York, NY –
Sen. Charles Schumer is defending himself against claims by regulators that he's partly to blame for the collapse of IndyMac Bancorp.
The regulators say Schumer caused a run on the bank by releasing a letter about the possible risk of IndyMac failing.
The New York Democrat says there was nothing in the letter that wasn't already public knowledge.
SCHUMER: The breadth and depth of the problems of IndyMac were created and apparent for years, and they accelerated in the last six months.
REPORTER: Depositors withdrew more than $1.3 billion during the 11 days after the letter was released.
On Friday, the Office of Thrift Supervision transferred control of IndyMac to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.
The bank is scheduled to reopen today as IndyMac Federal Bank, FSB, under the oversight of the FDIC.
Regulators say IndyMac is the largest regulated thrift to fail and the second-largest financial institution to close in U.S. history.
Leave a Comment
Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.