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.