New York’s Chuck Schumer (D-Blabbermouth) leaks to the press a letter he wrote demagoguing bank regulators and singling out IndyMac’s financial instability.
Schumer sent letters to the Office of Thrift Supervision, the Federal Deposit Insurance Corp. and the Federal Home Loan Bank of San Francisco, saying he was “concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers.”
IndyMac, which has suffered huge losses on defaulted mortgage loans, “could face a failure if prescriptive measures are not taken quickly,” Schumer wrote.
Uh, wait a minute — how could Schumer know that? And since when are regulators supposed to tell the public in advance that a particular institution has been earmarked for failure? All that would do is guarantee a collapse. If depositors are within FDIC insurance limits they have nothing to worry about, anyway…
…John D. Hawke, the U.S. comptroller of the currency (regulator of national banks) from 1998 to 2004, had more pointed words for Schumer in a story in the American Banker newspaper today.
“If Schumer continues to go public with letters raising questions about the condition of individual institutions, he will cause havoc in the banking system,” Hawke said.
“Leaking his IndyMac letter to the press was reckless and grossly irresponsible. I don’t see how he can be trusted with confidential information in the future. What this incredibly stupid conduct does is put at risk the willingness of regulators to share any information with the [congressional] oversight committees. After this, you’d be crazy to share information with Schumer.”
Democrat leadership: Not to be trusted with confidential information.
When Chuckie talks, markets balk.
Put those on bumper stickers and don’t forget it.