Schumer defends comments

The NY senator has been blamed to stoking panic among IndyMac depositors - and leading, at least in part, to the withdrawal of more than $1.3 billion that led to Friday's takeover by federal regulators. But Schumer defended himself during a Sunday news conference, saying that it's regulators who were not doing their job. "The regulator here was asleep at the switch," Schumer said. "The administration is doing what they always do, blaming the fire on the person who called 911." Meanwhile, FDIC offical John Bovenzi is holding a news conference at this hour in Pasadena, where he's saying that IndyMac will resume normal operations tomorrow and that business will be back to normal. "It is a strong and a safe institution," he said. “Customers should view this as just a change in ownership.” Of course the feds will be anxious to find a buyer for the company ASAP.

Also today, FDIC Chairman Sheila C. Bair, issued a statement that addresses the "inaccurate and inflammatory reporting which could well cause needless, unnecessary worry and angst among bank depositors throughout the country." Blair and Bovenzi are stressing that accounts up to $100,000 are federally insured, no matter what (IRAs are covered up to $250,000). "If you find that you are not fully insured, it may be possible to restructure your accounts to bring your deposits below the insured limits," she said. "But first get the facts before making any changes in your accounts or banking relationships."

Here's Bair's statement. Here's an AP report on Schumer's press conference.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing
Previous story: Studios issue threat

Next story: Fannie, Freddie get help

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook