Good Morning America Anchor, Chris Cuomo must think that NY Senator Chuck Schumer is Lord Voldimore from the Harry Potter books, as in “He Who Must Not be Named.” Either that or he takes his cue from dear old dad, former NY Governor Mario Cumo and doesn’t want to hurt democrats
Today while substituting for the show’s hosts and discussing the Schumer incited run on Indymac. He almost tripped over himself trying to avoid saying Schumer’s name (H/T Mark Finkelstein Cuomo Shy About Saying ‘Schumer’)
CHRIS CUOMO: People are so desperate in markets right now that negative information that allows them to short-sell or bet on banks not doing well is very popular. MELLODY HOBSON: So I’m suspect about where the lists are coming from; the motives of some of the people putting the lists out here. CUOMO: We saw the impact of panic not just on people but even in Congress, right? A senator gets up and says “I’ve heard something about a certain bank.” It’s in trouble the next day.
GETS UP AND SAYS I HEARD SOMETHING? You get up and say its supposed to rain. Schumer CAUSED A FREAKING RUN ON THE BANK. He destroyed jobs, and cost people personal hardship, not to mention the fact that the FDIC has to put out lots of cash to restore some of the accounts.
The Office of Thrift Supervision (OTS), whose job it actually was to regulate IndyMac, took a different view. “The immediate cause of the closing,” the OTS wrote in a press release, “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.” The OTS added: “In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.” Mr. Schumer now argues that OTS was asleep at the switch, and that blaming him is like blaming “the fire on the guy who called 911.” In fact, it’s blaming the guy who poured on the gasoline. Very few banks, if any, would remain standing for long in the current tense financial environment after a Senator, in effect, told its depositors to run for the exits. In the 1930s, such tipsters were derided as rumormongers and often faced indictment for encouraging depositors to stampede banks. Only last week, the Securities and Exchange Commission announced an investigation into the role of rumor-peddlers in the run on Bear Stearns. We somehow doubt that Mr. Schumer will receive similar SEC scrutiny for his very similar role in bringing about a liquidity crisis at IndyMac. But he may be more deserving.
Schumer is an embarrassment to NY State and to the Senate. Unfortunately, being a liberal he will be re-elected over and over. As far as Cumo goes, he should learn that he is not working for daddy’s re-election campaign and he should be fair and open about the truth.