Feds Say Sen. Chuck Schumer "Immediate Cause" Of Indymac Collapse

The press release that was issued by IndyMac's regulator, the Office of Thrift Supervision, said the "immediate cause" of the collapse of IndyMac was none other than the Democratic Senator from New York.

The press release said the following: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. 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 SCHUMERE. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.