Yesterday IndyMac Bank had to close their doors. 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 Chuck Schumer of New York. The letter expressed concerns about IndyMac Bank viability. In 11 business days, depositors withdrew more than $1.3 billion from their accounts.

In simple language, federal regulators blamed Schumer for a run on the bank.

Was Schumer's Attack On Indymac Coordinated with 'activist' group?

Clarice Feldman
CNBC is suggesting that Senator Schumer's unprecedented role in breaking Indymac, a Pasadena bank, was part of a coordinated scheme with The Center for Responsible Lending , as usual, a name from a far left "public interest" operation which, as is often the case, disguises its objectives and operations. It is for anything but responsible lending practices, in my opinion. http://www.capitalresearch.org/pubs/pdf/OT1005.pdf


"The Center for Responsible Lending issued an attack on Indymac within a few days of Schumerʼs letter. CRL is part of a small army of left of center ʽresearchʼ groups, community organizers, and public interest law firms who make their living accusing home lenders of racial redlining and predatory lending. On June 20th the Center accused Indymac of unfair practices regarding minority borrowers.


"A suspicious person might think that a network of lefty attack groups proficient in bank bashing and frequently funded by trial lawyers and short-sellers, coordinated their activities with a law firm on the hunt and a Senator who works closely with the network. "
American Thinker Blog: Was Schumer's Attack On Indymac Coordinated with 'activist' group?


Just imagine how much damage Schumer and his party will do if they control all three branches of the federal government.

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"We can't screw it up any worse than they have." - Barack Obama

Wanna bet?



"You never want a serious crisis to go to waste...." - Rahm Emmanuel

Yes, how dare anyone point out all the wrong things the Republicans are doing, it will cause a loss of confidence.

We shouldn't arrest bank robbers either, people will think their money isn't safe

And now you're defending predatory lending, which is mainly based upon outright fraud, as a responsible lending practice? Where did you learn your ethics, The Sopranos?

I don't believe any party is responsible for the banking crisis. After all, Chuck Shumer has been in congress for a very long time, nor do I blame him.

I do blame greedy mortgage brokers, extremely poor bank management, banking underwriters, & people who bought homes they couldn't afford in the first place, "on a throw of the dice, that interest rates would stay the same or go lower".

In fact, it's still hard for me to believe that someone who only earns $2000 per month was given a home mortgage that amounted to $2000.00 per month? In my lifetime & I have excellent credit, I've been made to bring in tax returns, hand over collateral, put up large deposits, etc. I still don't understand how all this happened, & how these people & mortgage brokers got away with it?

It isn't the NINJA (No income no job) loans that are actually the main problem, nor is it the second houses with wealthy people etc. People with good credit will usually sell out before foreclosure and/or have other resources they can fall back on to forestall it. They may take a loss but they're not the ones who go on the street.

Current propaganda to the contrary most victims of predatory lending are poor first time buyers, often welfare recipients with good credit prospects but no credit record, and the most prevalent practice is "flipping" which isn't just an ill-advised practice but involves outright criminal fraud and conspiracy on the part of several people.

And the tendency to this started in 1994, when a certain party took over Congress, and really accelerated in 2000, when they took the Presidency. It's been a known thing that something like this was coming in the industry for several years, but who cares, they were all making money.

Predatory lending is just a lib catch-phrase for lending to folks who won't pay their bills or couldn't afford the loan in the first place for one reason or another. People with bad credit scores usually earned those scores.

I don't like compound interest which is geared toward the bank but many of the loans that fell through were given to people that shouldn't have qualified. Government is the cause of many of the foreclosures because risky loans were given to people who never pay their bills.

Truth is, no bank keeps all of their investors cash on hand so causing a run on a bank, as Chuck Schumer did, is irresponsible. You could cause a run on any branch at any time if you wanted to. The problem here is we have Democrats running our government that intentionally want to cause chaos in the economy because they think it will get more of them elected.

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"We can't screw it up any worse than they have." - Barack Obama

Wanna bet?



"You never want a serious crisis to go to waste...." - Rahm Emmanuel

Flipping isn't criminal. There is no law that says you can't buy a depressed property and re-sell it for a profit.

It's not even criminal for a Real Estate broker to do it. They only have to notify the seller that they are a Real Estate professional.

__________________


"We can't screw it up any worse than they have." - Barack Obama

Wanna bet?



"You never want a serious crisis to go to waste...." - Rahm Emmanuel

Course then again it might be because IndyMac is insolvent that people wanted their money...call me crazy...

Another reason that they had a run could have been because they are under FBI investigation.
But I know you couldn't resist the chance to post another " The Dems are out to destroy the world" thread. Do you and lost soul have some kind of contest going to see which one can post the most " The dems scare me" threads?


FBI probing failed IndyMac bank: report - Yahoo! News

FBI scrutinizes failure of IndyMac Bank - USATODAY.com

It's criminal fraud to hire a crooked appraiser and then have him value the property at twice what the market will actually pay and its criminal fraud for loan agents to falsify incomes and other info so as to get people approved for credit they shouldn't have. People go to jail for this if they're caught. I'm not talking about buying, fixing and selling at a profit. I'm not even talking about finding an undervalued house or a forced sale. I'm talking about buying and jacking up the appraisal for no other reason than you've slipped the appraiser a few extra hundred and a loan agent getting a good credit score by putting false figures in the computer.

I work in this industry, I know, I could tell you stories that would curl your hair, but it probably wouldn't work, you'd just say that customers should know better After all, don't all young people just starting out all know just as much as licensed professionals with years of training and experience? I guess that's why the professionals charge so much.

I suppose I shouldn't be surprised. You approve and defend outright goddam fraud on the part of our President, why shouldn't this be extended to everybody (or everybody that's rich and Republican, I guess)

Cause govment forced banks to make risky loans?

You can't be serious if you think this caused the current mortgage/housing correction. Of course there is fraud out there but to suggest we are where we are because of that is bullshit. The reason we have this problem is that morons, particularly in California, Arizona and Florida bid up houses at inflated prices because they thought the sky was the limit. We're not talking about investors here, we're talking about mom and pop. Houses appreciate at between 3% to 6% per year. You can't sustain a market at 10% to 20% per year...ever. It was coming, many people predicted it just nobody knew exactly when.

Loan agents, or anybody for that matter, can't put "false figures" in a computer and get a good credit score unless you are a 14 year old hacking into the credit bureaus. This statement tells me you don't work in the industry and if you do, you don't know what you're talking about.

I'm sure you could and judging by you post they would be just that...stories.

Young people should know enough math to figure out if they can afford something or not. I'm not saying it is solely their fault. There are some slick people out there in all industries but again to suggest it was so rampant that it caused our situation is just, well, typical liberal "it's not your fault" attitude.

And there we have it...it's Bush and his rich Republican cronies fault. Brilliant analysis...you nailed it.

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American by birth.
Conservative by the grace of God.

Wow.... This goes to show that the far left doesn't have a monopoly on tin-foil hats.

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Congratulations President-Elect Obama

If I had said what Chuck said the SEC would have be strung up by my nuts (I work in the financial biz).

Chuck does it and its OK ?

Manipulating the markets is against the law. And this is BLATANT.

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Hope is the opposite of audacity. It's passive, an excuse for inaction.

Socialism doesn't create a rising tide that lifts all boats. It drains the lake and teaches the boat riders not to help themselves by rowing.

“What's the difference between Sarah Palin and Barack Obama?”

“One is a well turned-out, good-looking, and let's be honest, pretty sexy piece of eye-candy.

“The other kills her own food.”

OK.............You're Crazy.

__________________


"We can't screw it up any worse than they have." - Barack Obama

Wanna bet?



"You never want a serious crisis to go to waste...." - Rahm Emmanuel

What do you think an irresponsible person who never pays his bills is going to do when the ARM he has hits the end of it's fixed period? The problem in this country is almost everybody is dishonest, the lender and customer. I've got a list as long as my arm of people that borrowed money from me and never paid it back. I think there are more dishonest borrowers then there are dishonest lenders.



I work in the industry also. What you're talking about is pure scuttlebutt. Gossip......in layman's terms. Stereotyping used to paint the entire industry in a bad light. You're not being specific nor can you site specific cases because you just want to spread ill-will about bankers and brokers.

There is always people in the industry that are trying to go around the rules and I'm not talking about those kinds of situations. Chuck Schumer made statements intended to play on people's fears. Our economy is based on consumer confidence and especially where the banking industry is concerned, trust is very important.

Where in my post did you see evidence of appraisers fudging the numbers, or Brokers pulling a fast one on the seller. I have been buying property for 31 years and in the Real Estate business you will always come across dishonest operators. That is why they teach you in Real Estate school "Buyer Beware". You have to look out for yourself and you also have to learn that if it looks too good to be true and sounds too good to be true........it probably is. The government shouldn't be in the business of preventing people from making stupid choices. It is up to each individual to look out for themselves.

The problem here isn't people just flipping properties but we have a situation where people that never earned the trust to receive loans for their homes have been getting loans they shouldn't have qualified for. They had to stretch the rules or mandate new rules just to get them into those loans.

Schumer and the Democrats are trying to criminalize everything. They are looking to cause problems instead of staying out of the way because they obviously can't fix anything. That's not how they got back in power. They took back power by pointing out the flaws in everyone else at the same time causing us to ignore their's.

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"We can't screw it up any worse than they have." - Barack Obama

Wanna bet?



"You never want a serious crisis to go to waste...." - Rahm Emmanuel