Aug 20, 2008

Blame the letter, not the loans (*UPDATE)

Former employees of IndyMac bank have asked California Attorney General Jerry Brown to investigate New York Sen. Chuck Schumer's role in the bank's failure.

For those who don't remember, federal regulators seized IndyMac shortly after Schumer sent out a letter questioning the bank's solvency. Although some might have thought him prescient, at least one regulator implied Schumer pushed things over the edge. Schumer, meanwhile, had his own finger pointing to do.

And who is making sure reporters get copies of the employees' letter?

From Reuters: Copies of the employee letter were distributed to the press by CRC Public Relations whose clients include the National Republican Congressional Committee, National Republican Senatorial Committee and the Republican National Committee.

CRC, based in Alexandria, Virginia, was also linked to a company that published a book questioning 2004 Democratic presidential candidate John Kerry's Vietnam service on a swift boat.

I'm pretty sure bad loans and skittish investors had something to do IndyMac's demise, but I'm no financial expert. Meanwhile, Mark Lacter reports on FDIC efforts to help delinquent borrowers stay in their homes.

*UPDATE: AG Jerry Brown has declined the invitation to investigate Schumer (via LA Biz Observed)

1 comment:

Anonymous said...

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