IndyMac

I wasn't concerned, um, at the time because I had the retention package that they were... 'Cause they wanted me to stay on so that people wouldn't come.

We were, we were at this bank when they, when they announced the failures of IndyMac and like the, the FDIC did takeovers, and we had lines out the door of people doing the run on the bank, trying to get their deposits out because they were worried about the FDIC limits.

Like it was...

We were...

The number one senator for the Democrats, the Senate majority leader, just so happens in the summer of a presidential election, when Senator McCain, the Republican nominee, was riding high after picking the Alaska governor, Sarah Palin, he just happens to come out and say a major bank's going to fail.

Democratic Senator Charles Schumer of New York is defending himself against allegations that he is to blame, at least in part, for the collapse and subsequent government takeover of a major mortgage lender, IndyMac.

Schumer is a member of the Senate Banking Committee.

On June 26, he sent a letter to market regulators expressing concern about the solvency of the bank.

Quote, the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac.

Schumer then publicly released the letter.

In the 11 days that followed, depositors withdrew more than $1.3 billion from IndyMac, leaving the bank unable to function.

But Schumer denies that he is at fault.

Yeah.

Right? And they were connected to RFC and Prudential both were probably the two biggest ones, and then IndyMac sort of showed up with Countrywide.

But when you look at it, non-agency became a thing as a result of, of over ADLTV, jumbo limits, and then their connection was with mortgage insurance companies at the time, so they would outsource credit and all those things to MI companies who would then make the credit decision.

Well, that industry sort of blossomed really in the late '80s, early '90s, and that was non-agency.