Investigating Blabbermouth Schumer
Jerry Brown is the California AG, so expectations should be managed. Still, the prospect of blabbermouth Chuckie being held to account for his reckless indiscretion is worth savoring, even for a fleeting moment:
California’s attorney general is reviewing a request by former employees of IndyMac Bancorp Inc to investigate whether a New York senator triggered the bank’s collapse by releasing confidential information.
At issue is a much-publicized letter that Chuck Schumer, a Democrat, sent in June to the Federal Deposit Insurance Corp (FDIC) and Office of Thrift Supervision (OTS) questioning the company’s ability to survive.
The FDIC took control of IndyMac on July 11 after depositors withdrew more than $1.3 billion over 11 days. It was the third-largest bank failure in U.S. history. At the time, OTS Director John Reich blamed Schumer’s letter for causing the run on the bank.
In a letter to Attorney General Jerry Brown last week, 51 former IndyMac workers wrote: “From the day (Schumer’s) letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure became inevitable.”
Brown’s spokeswoman Christine Gasparac said on Wednesday that his office was reviewing the letter and that a decision on whether to act on it could be made as early as next week.
IndyMac is based in Pasadena, California.
After IndyMac’s collapse, Schumer accused the OTS of allowing IndyMac’s lending practices to slip. IndyMac specialized in a type of mortgage that often required minimal documents from borrowers.
Background blogging on Schumer/Indymac here. In related IndyMac news, this will get the blood of responsible borrowers and homeowners boiling:
Federal regulators yesterday announced a plan to systematically modify the loans of at least 25,000 homeowners with mortgages held by failed lender IndyMac in an attempt to create an industry model for assisting troubled borrowers.
Throwing a lifeline to distressed homeowners, the Federal Deposit Insurance Corp. will offer delinquent IndyMac borrowers new mortgages with interest rates as low as 3 percent. It is partly a challenge of speed: The FDIC wants to complete the modifications by mid-October, three months after it took control of the troubled California bank. It aims to sell off IndyMac’s assets by then.
“I have long supported a systematic and streamlined approach to loan modifications to put borrowers into long-term, sustainable mortgages — achieving an improved return for bankers and investors compared to foreclosure,” FDIC Chairman Sheila C. Bair said in a statement.
FDIC officials said they hoped the program would become a model for the industry and prompt other mortgage lenders to do more to work with troubled borrowers, but they did not indicate whether they would adopt this program in future bank failures. Freddie Mac has also launched a pilot program allowing for mass modifications of loans.
“I think a lot of the [mortgage lenders] will frankly welcome the initiative,” Bair said in a conference call with reporters.
In other words, thanks to the government takeover precipitated by Schumer’s big mouth, those who were paying their loans on time get screwed — and those who were on the brink of foreclosure get rewarded.
Message: Stop being so damned conscientious and start defaulting now!
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I guess so. I’m not sure why the AP just can’t make it that simple.
Personal irresponsibility (with the exception of the environment) is rampant with secular progressives.
Interesting way of “progress” too, huh?
3%? I want in. How do I get this sweetheart deal? Should I not pay my mortgage for the next few months, or what?
Schumer should be impeached and removed. What a freakin joke. As far as this idiotic mortgage bailout… well, whatever. I pay my bills and I’m going to keep doing so because I’d rather die broke and with dignity than a useless loser on the government teat.
Help me – Help me – I’m tired of being good. Someone needs to write a book on how to live on the dole and still look oneself in the mirror.
My parents failed me. They taught me about personal responsibility and consequences. I was even spanked as a child. I need Help NOW. sarc/off
It does at least cause one to stop and ponder just who is making the smart choices. Are those of us who are responsible and feel like we should work to pay back debt we willing assumed the stupid ones here?
I’m waiting for the response from the Right about the Dems latest whine-fest re: McCain not knowing how many properties he owns.
And the big deal with that is….?
Oh wait, he must not be in default.
At first glance, I thought the headline read, “INVESTIGATING BLABBERMOUTH SCUM”. Then I read more closely and it did.
Got it. Big screen tv and a 3% mortgage, here I come!!!
how many illegal alien home owners are we the American citizens now rewarding ????
if you dont understand what an adjustable rate is you are too stupid to own a home .
BTW the dems are attacking McCain for having more than one house. They are trying to paint him as a rich guy. Duh.
The Republicans Made Me Do It: Reuters
I want 3%.
So if I don’t pay for a few months, they’ll forgive what I missed AND re-write the paper at three (3%) percent?
WOW, I could take a killer vacation.
The damage has already been done by Schumer. I doubt one single thing will done to him for his actions.
L
Boy, I finally give up. Will one of the resident liberals here please offer me some counseling? I was laid off recently, and I have a mortgage. I’m a hard luck story!!!
Instead of acting like a victim (which I am!) I hit the ground, found a job as a waiter at night and a job at a retail store during the day. Between the two jobs, I manage to pay my bills on time and pay my COBRA so that I don’t become a burden to the government. All the while I am still paying my taxes so that the people who are lazier-er- more victimized than I am can get their free education, housing, food, and medical treatment.
Help me liberals! I want to be like you! Help to abandon my painful adulthood filled with responsible behavior, and begin acting as you advocate. Can you tell me where to get some weed, to start off with? I figure using drugs is the first step on the pathway to government dependence, and the mindset required to lose my pride and self esteem.
This crap makes me sick…
Isn’t Schummer one of the White Male leaders of the Democratic party? His day is coming.
Investigate this
John Edwards house is worth what? How many millions “the one” raises for his campaign from Soros?
If only the MSM chose to “report” a dem.scandal!
Don’t pay your morgage and the Great One will bail you out….. I wonder what would happen if I can’t afford my property taxes this year?
I know, its huffpo But on this link they say
So the ad is wrong. You would think they would actualy check thier facts before producing an ad.
You would think, but that would take work, which is more than the average lib-activist-operative is willing to do.
Jerry Brown investigating Chuck Schumer? Don’t hold your breath for substantial information/comdenation/recommendation to be publicized soon! (Unless you are tired of living!) Swimbo and millions of citizens were raised by the same parental matra: “You broke it! You fix it. You spilled it! You clean it up! You made a bad decision! Live with the consequences! Don’t expect us to bail you out if you get into debt! You are on your own, so you are responsible! Get another job! THINK before you ACT!” Those of us who have been raised to be responsible for ourselves and our families are now responsible for more and more dead beats! Econ.101-No more than 25% of your income should be spent on a mortgage, taxes, and homeowners insurance! Another “old folks” sage advice: “If you can’t afford it, don’t buy it!” jb
You need help. You’d never make it as a liberal, being responsible and all you know. The liberal way is to blame everyone else.
:
Not holding my breath on this one.
Now, if it was a Republican senator, he’d be forced to resign immediately and sent to jail, in addition to the 15 front page, above the fold stories in the NYT, Washington Post, etc.
I just so happen to have a mortgage through IndyMAC. Back in May, my home equity was cut previously due to a claim that my “home value had dropped”, which is a load of stinking dog loaves. They returned my home equity line of credit after one of their geniuses told me that the bank was having problems and might go under (which I reminded him that the call was recorded).
The second time I received the same BS letter from IndayMAC was on the Thursday before they went belly up. What he did is worse of yelling “FIRE” in a crowded theater. I know two high up bankers of small banks who feared that this might have created a Domino Effect.
Charles Schumer is a scum-bag POS, who abused his title and shirked his responsibilities issuing a letter that caused this $1.3B nightmare to the bank.
Of course this bloated puss-bag will act as if his soiled linens smell like roses.
He is a corrupt dinosaur and will not be missed.
I highly doubt Jerry Brown will lift a finger on this matter.
Schumer is a liberal flame-thrower and has thus far escaped any repercussions for his big mouth. I’d love to see him take a direct hit as the ethically-challenged, self-serving schmoe he really is.
If I have two loans do I get a 1.5% rate for each?
me too.
Vote them all out now.
Maybe, if you dress up like Juan Valdez and ask really really nice.
Don’t forget to ask free food for your Donkey.
“Hello…I’m from the gov’t…I’m here to help.”
Clinton Plan Would Soften Banking Rules
NYTimes, March 10, 1993
Follow…The…Bouncing…Ball
Hey everybody! I’m having a mortgage burning party, even though I still got 20 years to go, and you all are invited! BYOB.
If this gets approved, I’m suing GMAC for an equivalent interest rate.
I am about to turn 40 and still rent because I can’t afford a house at this time. After reading this, what the heck, I’m going house hunting this weekend. I can get a huge house and after a year I can default on the loan and everyone will come to my rescue. So long apartment living, hello good life.
He killed those banks in cold blood because he was overextended. He can’t handle the stress & pressure.
John Murtha
What is it with Dems and letters?
Harry Reid.. Chuck Schumer..
My mortgage is held by IndyMac and I have never missed a payment or have I ever been late. Where’s my reward?
If I can get my loan adjusted down to 3% by missing a couple of payments then count me in.
Where do I apply?
#33 Simon86
I’m 42, and we rent. We sold our house and acreage because it was eating up too much of our income, and we need to get therapy for our autistic son.
If only we had waited for Big Brother to come bail us out.
But, dog gone it! My parents raised me to have a sense of pride and dignity!
This isn’t about average joe citizen, it’s so that that defaulting
broadcongresswoman can get money for those three homes she defaulted on. Democrats protect their own no matter what.#37 tre
I was also taught well by my partents and I’m glad to see I’m not the only responsible person who knows the limits of their financial situation. I will say, one good thing about living in an apartment…I don’t have to cut the grass.
Chuck Shumer… the financial markets’ equivalent of Joe Biden.
I asked for this weeks ago!!!
GO GET HIM!!!
He’s a Dem, nothing will happen. It will be blamed on Bush and the e-vil genius Karl Rove…
Sic Semper Tyrannis!!
PS – This is positively disgusting and I hope no one who is of sound conscience allows this temptation to derail them.
Nothing like a governement who actually tempts people to do wrong. Sheeesh.
Rewards them for it, too, Joy.
I think people here are missing the point. Especially those who ascribe these Liberal actions to random stupidity. In a randomly stupid situation there would be acts both above (patriotic, culture-building, pro-prosperity, government repairing… however you want to define a positive graph point) AND below (unpariotic, deconstructing the culture, depressive, etc. a negative graph point) the mean.
That isn’t what’s occuring. We get a steady stream of negative prosperity destroying graph points.
Cluckie Shroomer isn’t without craftiness. Do you really think its w/o purpose? I do not.
They ought to get together for a convention. Oh, wait.
If they investigate [unlikely] that will just get him more TV exposure whcich was the point of the entire adventure, what would he know about banking or the real world, he is a piece of ‘Schumer’.
Thanks Schumer for adding to the national debt.
I bought my house in 1989 when I was single. I live in the same house, but now with a wife and 3 children. I am a single income person in a double income world and here in the Baltimore – DC suburbs you need 2 incomes to afford anything with 4 bedrooms/2 baths in a reasonble school district.
I wish now I could have gotten a big mortgage I couldn’t afford, defaulted and then received one of these 3% deals. It seems this is the new American Way, screw your mortgage company and be rewarded by the government so they can screw the taxpayer.
First real estate industry artifically inflated the prices of houses with these idiotic mortgage schemes and now they are bailing the idiots out and keeping the prices inflated.
Was it really his fault? If he made the letter public then perhaps. If it was a private correspondence made public I would say no.
The 1st time I saw shuma was in 1993 during that stupid “assult weapon” thing. I didn’t like him then and I don’t like him now. Although he has never let me down. Back then I never expected anything good to come from the scumbag and like I say, he has never let me down in that area. Nothing good………ever
It’s Schumer’s fault, yes.
Here’s what the OTS (Office of Thrift Supervision) says: “The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York.”
It was a letter Schumer wrote privately to the feds, which he later leaked to the press.
He did it to try and hurt the OTS, as evidenced by his response here: “If OTS had done its job as regulator and not let IndyMac’s poor and loose lending practices continue, we wouldn’t be where we are today.”
Sorry, Grunt, but those were his comments; not mine.
What’s the point of bailing out these reckless and useless companies if the Government doesn’t at the very least:
- Put an end to the Community Re-Investment Act
- Convict Frank, Dodds and el at
- Censure blabbermouted Chuck Schumer
- Evoke heavy fines on Realtor’s, Mortgage Companies and banks that gave out loans to people with no means of ever re-paying them.
- Convict CEO from said Banks, Mortgage Companies and Realtor’s
- Make house flipping illegal
- Convict groups like La Raza that told Illegals how to obtain mortgages illegally
- And most importantly start mass deportation of illegal aliens and build the freakin fence
Stupid lawmakers keep saying that Illegals help the economy. Yeah right! They helped it go straight to sh*#.