"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"."The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history".
"In the 11 days that followed the letter's release, depositors took out more than $1.3 billion, regulators said".
"In a statement Friday, Schumer said IndyMac's failure was due to long-standing practices by the bank, not recent events".
"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," Schumer said. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."
Friday, July 11, 2008
Posted by Harriet at 8:33 PM