"The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositorsí 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 Schumer of New York. The letter expressed concerns about IndyMacís viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts."
Was the bank facing a liquidity crisis? Yes, it was. However, there were already regulatory efforts underway to solve those problems in a way that would not require a government takeover of the IndyMac. Schumer, whose self-serving publicity hounding is legendary, decided to go public with information that he knew or should have known would be detrimental to the process -- and now he arrogantly refuses to accept any blame for his own politically motivated actions that were the proximate cause of the institution's downfall -- and blames the regulatory process that he created in legislation that he largely wrote back in 1999.
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