Schumer May Be Probed in Bank Crash
IndyMac employees say senator is responsible for collapse
Published at 11:57 PM EDT on Jul 16, 2009 | Updated at 7:13 AM EDT on Aug 21, 2008
Employees of the now-defunct IndyMac Bancorp. are charging that Sen. Charles Schumer triggered the third largest bank failure in U.S. history.
Schumer questioned IndyMac's viability in a June letter to the Federal Deposit Insurance Corp. and the Office of Thrift Supervision, which employees claim divulged confidential information. The bank was taken over by the government in July.
The California attorney general is now reviewing a request made by 51 former bank workers to probe the senator from New York for his involvement in the crash.
"From the day (Schumer's) letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure because inevitable, " the employees wrote to the California AG.