Monday, July 14, 2008

Chuck Schumer, Meet George Bailey

It was not widely reported last weekend that federal banking regulators have stated that the "run" on the failed Indymac bank of Pasadena, Ca. was caused by the public grandstanding of one of New York's Senators, Democrat Charles Schumer. Schumer of course denies that his grandstanding had anything to do with the bank run that started in earnest after Schumer commenced his grandstanding.

Senator Schumer, meet George Bailey as he talks to the town of Bedford Falls, New York on the subjects of how banks work and how bank runs occur. I would suggest viewing the complete movie, Frank Capra's It's a Wonderful Life starring Jimmy Stewart, Donna Reed and Lionel Barrymore, it is a holiday classic after all. Thank you Frank Capra and thank you Jimmy Stewart, the Senator needs the help.

Update: The more I Googled the worse it got, CNBC is suggesting that Schumer may have acted in concert with, get this, a "left wing activist group", hmm, you think? An interesting add-on is the possible involvement of short-sellers of Indymac stock, hello SEC. Here are two of the key paragraphs:

Perhaps this might help answer the question: 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.

A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network.

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Anonymous Anonymous said...

New York Times reported that hedge fund managers have a new champion in their effort to keep legally dodging the taxes the rest of us pay: none other than New York Senator Charles Schumer. Now you know who is Schumer's friend and why he caused the bank run on Indymac. He truly support hedge fund and private equity because they truly support him.

"Large Investor decided to pay a few bucks to a Senator in New York to force the issue."(Prospect Mortgage Backed By Sterling Fund--Private Equity Acquired The Mortgage Branches from Indymac before FDIC takeover)

"And do remember that there are many investment bankers located in New York, making them pretty influential constituents of Sen. Schumer."

"In a Sunday news conference, he said everything in his letter was already known to the public."
If it was already known to the public, what is the reason for his public letter? It is contradict to what he said previouly :"I just bring private message to the public. Do not kill the messanger." What a great liar from time to time!

9:02 PM  

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