Chuck Schumer D-NY has personally pushed IndyMac, a 19 billion dollar mortgage banker in California, off the cliff. Obviously, banks have been hit hard by foreclosures, and that included IndyMac. But the FDIC was already there looking into things, making sure the bank had assets available to cover their obligations, and without going into too much nitty gritty, they were probably going to be ok.
Then good old Chuck decided to write an open letter to the FDIC talking about how IndyMac is going down the drain. That got reported, and it effectively started a run on the bank (something we haven’t seen since the Great Depression). Keep in mind, the FDIC insures this bank.
What always happens when there’s a run is, everyone hears the bank is in trouble, so they pull all their money out, which means that then the bank REALLY IS in trouble. I read one customer quoted as saying “If they fix their problems, I’ll come back.” But the fact, if people like him just stayed there, they wouldn’t HAVE that big of a problem.
More than 96% of the deposits at IndyMac are insured by the FDIC. Now why, you ask, is there 4% that isn’t insured? It’s because people are effing morons and had more than $100,000 in an individual deposit account. How frickin stupid do you have to be to put in more than the insured amount?
I just cannot feel sorry for people who make moronic decisions and then whine about how it’s not fair. What wouldn’t be fair is if the government steps in and uses our tax dollars to give these people money that WASN’T insured. Why should the American people have to pay for your bad decision?
Anyhow, when all of those people working at IndyMac are in the unemployment line, I hope they think of bleeding-heart Chuck Schumer and his reckless destruction of their employer.