Thousands of individual account holders may lose millions in the melt-down of IndyMac Bank.
The taxpayers lost at least $4 billion and maybe twice that amount.
New York Democratic Senator Chuck Schumer started the run on the bank that led to the losses, and the Wall Street Journal’s editorial this morning details his perfidy:
The federal takeover of IndyMac Bank over the weekend could cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion. But Senator Chuck Schumer, who helped to precipitate the collapse by publicizing a letter to the bank’s regulator last month, has no remorse.
He was, he says, just doing his job in telling regulators that the bank “could face a collapse,” a prophecy that quickly proved to be self-fulfilling. “It’s what legislators are supposed to do,” the New York Democrat told the Journal. Depositors who spent Monday trying to recover some of their money might beg to differ.
Read the whole thing. Pay close attention to the last paragraph:
But Mr. Schumer was not content merely to share his profound concern with regulators. He also leaked the June 26 letter to the press-which is more like shouting “fire” in a crowded bank than dialing 911.
Lots of ordinary people lost lots of money because Charles Schumer always needs the spotlight. Those families may never recover their financial freedom, but Schumer sails along, as culpable as the worst Enron executive for the ruin he has visited on innocent people.