I was thinking earlier today about the huge numbers of Democratic distortions and outright deceptions swirling around in the news. Nancy Pelosi calling drilling a GOP hoax and continuing to blame Republicans for gas prices; Dennis Kucinich and other Democrats deflecting attention from their historic 91% DISapproval rating by renewing calls for W to be impeached; their deafening silence on how badly the war in Iraq is going and their insistence on sticking the many with the tab for the greed and ignorance of a few in housing speculation. All of these things and so much more await the nation foolish enough to grant these people additional power in November in the name of ‘Change’. What we need a change from is Democratic policy!
Just exactly how bad would it be for Democrats to be in charge of both the White House and Congress? While there is no way to tell for sure beyond the incontestable “Very, very bad!”, we have a fly-on-the-wall view of the destruction awaiting America’s millions. It was provided by none other than Democratic icon and NY Senator Charles “Chuck” Schumer.
Most of you are by now aware of the failure of either the second or third largest bank in US History on Friday, July 12th, 2008. Depositors staged a run on California based IndyMac to the tune of $100 million! The bank collapsed and was taken over by the federal government who opened up again this morning for business as usual. Well, except for the depositors with balances over the FDIC guaranteed $100,000 limit. As of this writing, there’s no word on what happened to balances over that amount although the first $100,000 is safe.
What you may not be aware of, as I was not, is WHY there was a run on IndyMac. I assumed, incorrectly, it was related to the subprime mortgage bailout and poor loan management and performance by IndyMac. Subprime mortgages are involved. They provided the weakness IndyMac was dealing with. However, that’s not why depositors broke the bank and headed for the hills with their cash.
Erick Erickson at RedState has the scoop. It seems Senator Schumer was not content to notify the Office of Thrift Supervision, IndyMac’s regulator, of his concerns about IndyMac’s condition and stability. Beyond that responsible notification, Senator Schumer made his concerns very public via a series of strategic leaks via letters to . When the public got wind of his concerns, they panicked and destroyed a financial institution.
This is not simply my highlighting a Democrat’s bad behavior. The Office of Thrift Supervision’s Director, John Reich, issued a written statement laying IndyMac’s collapse at Charles Schumer’s feet.
“As a regulator of insured depository institutions, we do not publicly comment on the financial condition or supervisory activities related to open and operating institutions,” Reich wrote. “We believe it is critically important to maintain the confidentiality of examination and supervision information.”
He went on: “Dissemination of incomplete or erroneous information can erode public confidence, mislead depositors and investors, and cause unintended consequences, including depositor runs and panic stock trades. Rumors and innuendo cause damage to financial institutions that might not occur otherwise and these concerns drive our strict policy of privacy.”
Senator Schumer evidently felt such a responsible handling of matters such as these was, itself, irresponsible and needed a little nudge in the right direction from his office. He did not deny or even apologize for his actions. Instead he justified them in a statement issued through his office in which he said,
The home loan bank system has an obligation to lend responsibly and police its members. But it has not been doing its job. We have found the only way to get the home loan bank system to act appropriately and positively is to make public the concerns we’ve already expressed privately.
Schumer’s hubris and arrogance as evidenced by his actions were summed up in a statement by former US Comptroller of the Currency John D. Hawke.
“If Schumer continues to go public with letters raising questions about the condition of individual institutions, he will cause havoc in the banking system,” Hawke said.
“Leaking his IndyMac letter to the press was reckless and grossly irresponsible. I don’t see how he can be trusted with confidential information in the future. What this incredibly stupid conduct does is put at risk the willingness of regulators to share any information with the [congressional] oversight committees. After this, you’d be crazy to share information with Schumer.”
I opened with noting this post would give you a glimpse into government with Democrats in control. Hawke’s comments are all the description one needs when contemplating such a horror. Havoc causing; reckless; grossly irresponsible; untrustworthy; incredibly stupid; putting [America] at risk; not to be privy to confidential or delicate information. One Senator, acting as he saw fit with no thought or concern for the people affected, decided to impose his will on a segment of the American people. That they weren’t people who could hold him accountable for his actions at the ballot box is even more disgusting. His actions have done incalculable harm to the economies, jobs, futures and dreams of thousands of people associated with IndyMac; the very little people Schumer and company ceaselessly tell us they look out for.
There’s some looking out to be done here, all right. America had better look out for itself and vote, not just “No!”, but “Heck, NO!” to any Democrat seeking office in November. If we don’t, we can all sit back and look out for more destruction born of arrogance headed down from the heights of Capitol Hill courtesy of Democrats.