This is exactly why Americans hates to give this country's economic stewardship over to the Democrats. Even though I have given them plaudits in the past they still end up showing us just how dangerous they are when it comes to economic issues.
The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse.
In the 11 days that followed the letter's release, depositors took out more than $1.3 billion, regulators said.
I think there should be a censure motion brought up against Schumer on behalf of all the shareholders of IndyMac as well as those people that have more then $100K in savings at the bank. It is pretty much because of the Senator's loose lips that there was a run on the bank.
It is true that IndyMac's management is to blame for things getting terminal but it was Schumer's big mouth that pulled the plug. The funny thing is that Schumer is from New York and not California where IndyMac is based. I think it may be a good idea for the SEC to see if Schumer or some of his people were short IndyMac, XLF, or financials in general to see if his loose words lined someones pockets.
It may now be a good trade to go short any bank or mortgage lender that any Senator or Congressman talks about because there might be a run on that bank. It also looks like WaMu and National City Bank may now be under the gun. I would be nice to know Senator Schumer's thoughts on those companies so I can put in my trade now.
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