Federal Banking Regulators have cited Senator Charles Schumer (D-NY) for causing a run on the IndyMac bank. Schumer wrote a letter to the regulators -- which he made public -- and depositors withdrew $ 1.3 billion dollars over eleven days.
As the Los Angeles Times online notes, Schumer's publication of his letter was the proximate cause of the run:
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.
Schumer has a nasty habit of interfering. As head of the Democrats' fundraising wing for Senate races, he overrode the preferences of Kentucky progressives by telling Andrew Horne to drop out of the Democratic primary. Schumer replaced Horne with millionaire Bruce Lunsford to run a (self-funded) campaign against Senate Republican Leader Mitch McConnell.
You want a bank run, or a perennial candidate with deep pockets? Talk to Chuck.
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