IndyMac Bankrupted For Failing Pay Protection Money

Posted by Hans Bader

In the Washington Examiner, Tim Carney has a priceless column entitled “IndyMac forgot to pay protection money.”  Liberal Senator Charles Schumer triggered a massive bank failure at IndyMac by scaring depositors into making a run on the bank.  Ironically, Schumer and his political allies, Congressman Barney Frank and Senator Chris Dodd, have whitewashed financial problems at another shaky financial institution that poses a much bigger danger to our economy, the fraud-ridden government-backed mortgage giant Fannie Mae.  The federal government is now planning to bail out Fannie Mae at a cost of billions of dollars.  Why was IndyMac’s treatment so different from Fannie Mae’s?  Carney explains that Fannie Mae has been run by a succession of liberal power-brokers, and its PAC has given lots of money to lawmakers to block any reform of its risky practices.  Liberal lawmakers like Schumer, Dodd, and Frank opposed any reform of Fannie Mae, and helped spawn the mortgage crisis by pressuring lenders into making risky loans in the name of “diversity” and “affordable housing.”

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07/18/2008 @ 1:06 pm | Constitutional & Legal, Economic Liberty, Politics as Usual | Comments

6 Responses to “IndyMac Bankrupted For Failing Pay Protection Money”

  1. Posted by: Crooks Shouldn’t Lecture Whistleblowers | OpenMarket.org - 07/19/2008

    [...] leaders behind those bills, such as Barney Frank, Chris Dodd, and Charles Schumer, have long blocked vital reforms of Fannie Mae, which helped spawn the mortgage crisis, even as Fannie Mae and the liberal power-brokers who run [...]

  2. Posted by: Fannie Mae’s Thugs Vilified Whistleblowers, Told Avalanche of Lies | OpenMarket.org - 07/23/2008

    [...] transferred to another committee run by the corrupt Michael G. Oxley, who worked in tandem with liberal stalwart Barney Frank to cover up the abuses at Fannie Mae and kill any reform [...]

  3. Posted by: Mortgage Bailout Bill Shreds Property Rights, Fleeces Taxpayers | OpenMarket.org - 07/24/2008

    [...] will bail out the mortgage giant Fannie Mae, which has used intimidation and deceit, and spent millions of dollars on high-priced lobbyists, to thwart efforts to rein it in, even after its management engaged in a massive accounting scandal [...]

  4. Posted by: Mortgage Bailout Bill Is “Structurally Unsound,” $25 Billion Tab Is “Wild Guess” | OpenMarket.org - 07/25/2008

    [...] into withdrawing a veto threat so that this boondoggle will become law.  The bill will benefit liberal lawmakers, like Barney Frank and Chris Dodd, who helped spawn the mortgage crisis by pressu… to people with bad credit, in the name of “affordable housing” and [...]

  5. Posted by: Bush Signs Blank Check for Costly Mortgage Bailout | OpenMarket.org - 07/30/2008

    [...] signing the bill, Bush knuckled under to Congressional leaders like Barney Frank, Charles Schumer, and Chris Dodd, who used the bill to fund left-wing special interest groups that support them, and to further [...]

  6. Posted by: Mortgage Bailout Skirts Rules, Constitution | OpenMarket.org - 08/01/2008

    [...] In “The Harry Reid Protection Racket,” the Washington Examiner yesterday explained how Senate Majority Leader Harry Reid flouted Senate rules to get the bloated mortgage bailout bill, which rips off taxpayers, passed by the Senate.   Flouting ”two centuries of parliamentary tradition requiring that all Senate bills be open to amendments,” Reid used bogus amendments to drown out real ones, in order to prevent lawmakers from even voting on amendments to protect taxpayers, such as Senator Jim DeMint’s amendment to limit lobbying by the government-backed mortgage giants Freddie Mac and Fannie Mae, who are the biggest beneficiaries of the bailout.  [...]

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