After Senator Charles Schumer made public comments about IndyMac that he should have kept to himself, surprise surprise, a run on the bank ensued and Federal Regulators indeed took over IndyMac today.
As much as I am opposed to the litigious nature of our society today, I hope the lawyers are already hard at work trying to find some way to pin shareholder loss on the weasel Schumer. If ever there has been a self fulfilling prophecy to the tune of billions of dollars, this was it.
If you think the economy, the mortgage market, and consumer confidence had bottomed out… sadly today you were proven wrong. Its going to get a whole lot worse. If IndyMac can be shut down by regulators, every other bank better watch out. I hate to say the sky is falling… but the stars just got a whole lot closer.
As a broker with long-standing relationships with IndyMac and Countrywide, I can tell you that these two are some of the good guys. In my experience their underwriting was sound and consistent. Granted I’m just a small player on a large stage… but there were/are countless banks and lenders who actually had shady practices and policies that these two giants did not. If IndyMac is now gone and Countrywide is under daily attack… virtually every other bank and lender in the country is in jeopardy.
[...] I’m not sure that this is a good idea. Americans need to do the same thing they should have always been doing… making sure their savings (savings accounts, CDs, IRA accounts, etc) are kept under FDIC limits so no matter what happens at the bank, their money is protected. A news outlet speculating on what banks may or may not fail is only going to precipitate a crisis and cause more unnecessary bank runs (ala IndyMac and the weasel Chuck Schumer). [...]
[...] probably read a lot of posts (this site included) complaining that the weasel Chuck Schumer’s disgraceful actions caused the bank run that led [...]