Sen. Schumer single-handedly sinks a bank

When IndyMac Bank became the third-largest bank failure in U.S. history on Friday, blame was placed at the feet of Sen. Charles Schumer (D-N.Y).

That assessment came from John Reich, director of the Office of Thrift Supervision of the Federal Deposit Insurance Corp., which will be left holding the bag as the result of the failure, to the tune of $4 billion and $8 billion, potentially wiping out more than 10 percent of the agency's $53 billion deposit-insurance fund.

Reich, quoted in the Wall Street Journal (subscription required) noted that Schumer had sent a letter to the regulator raising concerns about the bank's insolvency. Said the Journal: "In the following 11 days, spooked depositors withdrew a total of $1.3 billion. Mr. Reich said Sen. Schumer gave the bank a 'heart attack.' 'Would the institution have failed without the deposit run?' Mr. Reich asked reporters. 'We'll never know the answer to that question.'

Not unexpectedly, Schumer found someone else to blame. His excuse, as repored by the Journal: "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," Sen. Schumer said. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."

There's only one problem with this blowhard's explanation. At one time, he was taking credit for making mortgages available to marginally qualified families. A tip of the hat to Newsalert for reminding us.

United Airlines wants more regulation--for someone else

2 Chicago execs hit D.C. with different views on oil issue | Crain's

Years ago, United Airlines was among the leading voices in favor of airline deregulation. Of course that was before its flawed business plan drove it into bankruptcy. Now, United, once again in financial trouble, wants to impose tougher regulation on someone else: oil speculators, whom United blames for driving up energy costs.

"Believe it or not, these are fake"--Chicago Tribune Headline

Expert: Iran `doctored' photo of missile launches -- chicagotribune.com

It's long been know that Iranian President Mahmoud Ahmadinejad is dangerous. But with these doctored photos, he must also be stupid to think that he could get away with this.

Dangerous and stupid. A deadly combination

Straight talk on gasoline prices

This is one of the most concise, logical and factual pieces I've seen analyzing skyrocketing energy costs. It comes from USAA, a trusted, member-owned company that provides insurance, banking and financial services. I don't claim that it explains everything, but it certainly is helpful.

The self-gelding of Jesse Jackson

By Dennis Byrne
The Chicago Daily Observer

This apology mania is getting out of hand. It’s bad enough to have to beg for forgiveness for every perceived slight or insult. Now, Jesse Jackson has taken it a step further by issuing apologies when most of us didn’t even know what he was sorry for.

Only after Jackson jumped before the cameras to issue his mea culpa did we learn that he had criticized—in front of an open mic—the presumptive Democratic presidential nominee Barack Obama for “talking down to black people” by supporting federally funded faith-based initiatives. For that, Jackson said he would like to cut off Obama’s testicles.

So, when I had turned on the TV, I had no clue about what Jackson was apologizing for. It didn’t help when he tried to explain the meaning of what he said: “It does not reflect any disparagement on my part for the historic event in which we are involved or my pride in Senator Barack Obama who is leading it whom I have supported by crisscrossing this nation in every level of media and audience from the beginning in absolute terms.”

Come again?


Read more in the Chicago Daily Observer