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Should Charles Schumer be charged with Inciting an Economic Panic?

He released a letter stating that IndyMac was in trouble and indicating that it would probably collapse. People then yanked their money out of IndyMac and it collapsed. Now WE will have to cover all of those accounts - yes, you and me will be coughing up the money to reimburse the account holders - and who knows how much damage this will do to our already suffering economy.

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kaycee14

Asked by kaycee14 at 12:53 AM on Jul. 14, 2008 in Money & Work

Level 6 (129 Credits)
Answers (2)
  • No, he shouldn't. Is it supposed to be kept quiet that a financial institution is in trouble? Wait until those with money over the insured limits lose it?

    That's why we have the FDIC. And, control of the company switched hands. Account holders were barely inconvenienced.

    And, it's wise to keep an eye on the financial status of the institutions we have our money in. How could the collapse really be a surprise when "over the past two years, IndyMac dropped over 95% in stock price, or about $3.5 billion in market capitalization. By Friday, shares were down to 28 cents."
    halfpint_ny

    Answer by halfpint_ny at 6:56 AM on Jul. 14, 2008

  • Oh, and "The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities." So, the money's not going to come from taxpayers.

    This question would be good in a debate group...
    halfpint_ny

    Answer by halfpint_ny at 7:04 AM on Jul. 14, 2008

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