Wednesday, July 16, 2008

Chuck Schumer’s bank panic

In a bank panic reminiscent of the Great Depression, the California Indymac Bank closed its doors recently. According to an article by Jerry Bowyer, “Schumer started sending letters to regulators attacking Indymac, questioning the financial viability of a bank which he had never examined.”

Then Schumer leaked his letters to the press which ran a story suggesting that Indymac was about to go under. This became a self-fulfilling prophecy and Indymac customers started withdrawing their money to the tune of 1.3 billion dollars.

Bower says, “So far about half their workforce has been laid off; and roughly 10,000 depositors are without full insurance coverage for their lost deposits. The shareholders have lost nearly everything.”

All thanks to Democratic Senator Chuck Schumer. Schumer is presumably no idiot. He had to know the potential consequences of releasing such a letter to the media. Please read the entire infuriating story in TownHall.

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