Former Bank Regulator to Schumer: Please Shut Up

Last week Democrat Sen. Chuck Schumer may have caused Indymac Bancorp to go under by publicly disclosing his (highly speculative) thoughts. Schumer publicly stated that he is "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers." and "could face a failure if prescriptive measures are not taken quickly."

Schumer's comments caused a run on the bank by depositors over the next couple of days, causing panic where there was none before. John D. Hawke, the U.S. comptroller of the currency (regulator of national banks) from 1998 to 2004, had harsh words for Schumer:

"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."

There you have it - your Democrat leaders hard at work trying to create chaos in an effort to look like they're doing something.