California coming after Schumer?

posted at 8:45 am on August 22, 2008 by Ed Morrissey

Former California governor and current Attorney General Jerry Brown has run for President as a Democrat, but he may start gunning for another Democrat — in court.  Brown reportedly may open an investigation into actions taken by Senator Chuck Schumer (D-NY) in relation to the IndyMac failure last month.  The failure cost the government billions in insured deposits and threw a lot of people out of work, most of whom blame Schumer for delivering the coup de grace:

California’s attorney general is reviewing a request by former employees of IndyMac Bancorp Inc to investigate whether a New York senator triggered the bank’s collapse by releasing confidential information.

At issue is a much-publicized letter that Chuck Schumer, a Democrat, sent in June to the Federal Deposit Insurance Corp (FDIC) and Office of Thrift Supervision (OTS) questioning the company’s ability to survive. …

In a letter to Attorney General Jerry Brown last week, 51 former IndyMac workers wrote: “From the day (Schumer’s) letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure became inevitable.”

Schumer’s office tried to spin this as a Republican dirty trick, but that’s one charge that will be hard to make.  During his term as governor and over his entire political career, Brown never gave the impression of being a closet conservative.  He didn’t earn the moniker “Governor Moonbeam” for his centrist policies.

However sharply left his political outlook may be or have been, Brown has a pretty good reputation for honesty and integrity.  As far as I recall, the only “scandal” ever attached to Brown was his one-time romance of Linda Ronstadt, which was a scandal that many young men in California would have welcomed for themselves at the time.

If Brown finds anything actionable against Schumer, he’ll pursue it.  Frankly, I don’t think Schumer did anything for which he can be prosecuted.  However, his role in the collapse of IndyMac and the costs to taxpayers should force New York voters to consider his retirement in the next election.  If Brown can help make that clearer to Schumer’s electorate, so much the better.


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OT: what happened to the Obama post on China’s great infrastructure? It’s still on the home page, but I now get a 404 error after clicking the link.

GoHskrs on August 22, 2008 at 8:50 AM

Never mind. It’s back.

GoHskrs on August 22, 2008 at 8:51 AM

Frankly, I don’t think Schumer did anything for which he can be prosecuted.

I don’t know. I’m not saying that I think he should be prosecuted for this (I don’t) but the way some short-sellers had government lawyers come crashing down on them for merely bad-mouthing crappy companies on message boards … versus the stature of a Senator bad-mouthing a bank in official correspondence that was released to the public to make it more message-boardish … Equal Protection would demand that Schumer receive the same sort of treatment. Of course, it will never happen.

progressoverpeace on August 22, 2008 at 8:52 AM

There is SO much more to this story. Maybe Jerry Brown can get at it.

IndyMac Bank had become a major player in the mortgage business, especially in the obscure but growing area of reverse mortgages for senior homeowners. Some of the big New York banks did not like the competition. They were already reeling from getting outmaneuvered by Bank of America for the remains of Countrywide (which Schumer and his pals also helped to kill.)

The big New York banks have been major contributors to Schumer and to the Democratic Senatorial Committee which he chairs. And, surprise surprise, he has left them alone.

IndyMac Bank does not even have a PAC or a registered lobbyist in Washington. Zero contributions from its employees to Schumer or the DSCC.

You figure it out.

rockmom on August 22, 2008 at 8:55 AM

It’s about time

Think_b4_speaking on August 22, 2008 at 9:00 AM

Whatever they can do to this self-aggrandizing media whore, I’m all for it. If it just even gets him off my television, then it’s worth it.

JammieWearingFool on August 22, 2008 at 9:01 AM

It’s about time

Think_b4_speaking on August 22, 2008 at 9:00 AM

My sentiments exactly.

jencab on August 22, 2008 at 9:08 AM

“California coming after Schumer?”

Oh please take him. Even if he can’t be prosecuted successfully, just take him…

jon1979 on August 22, 2008 at 9:08 AM

Schumer intentionally tanked IndyMac. The question is, how did he personally gain from it. An investigation would answer that question.

TheBigOldDog on August 22, 2008 at 9:09 AM

Schumer has already blamed President Bush for this fiasco, but as liberal as Cali is, they’re not blaming Bush.

Eyes open, Schumer.

madmonkphotog on August 22, 2008 at 9:10 AM

“As far as I recall, the only “scandal” ever attached to Brown was his one-time romance of Linda Ronstadt, which was a scandal that many young men in California would have welcomed for themselves at the time.”

Maybe Jerry can talk Linda into doing a video scolding Schumer………”You’re no good, you’re no good, baby, you’re no gooooooood”

Rovin on August 22, 2008 at 9:11 AM

Even if Brown finds him responsible and does not go after him, wouldn’t that leave this jerk open to lawsuits? I wouldn’t mind seeing this guy bankrupted by this. Of course, I’d rather see him playing the part of Big Bubba’s love interest.

thekingtut on August 22, 2008 at 9:25 AM

If you think the liberals in New York get a rat’s azz about anything other than themselves you are sadly mistaken. They’ve got Hillary and “Jr Senator” Chuckie…. need I say more.

roux on August 22, 2008 at 9:27 AM

Brown never gave the impression of being a closet conservative

That should be the quote of the day.

MamaAJ on August 22, 2008 at 9:27 AM

Maybe Jerry can talk Linda into doing a video scolding Schumer………”You’re no good, you’re no good, baby, you’re no gooooooood”

Rovin on August 22, 2008 at 9:11 AM

Personally, I prefer the Van Halen cover of “You’re No Good” from Van Halen II

juanito on August 22, 2008 at 9:31 AM

But, but, but we can’t go after Schumer because he’s for women’s rights and making the rich pay their fair share and…ooof!

Sorry. I’m back. Maybe the media will cover this. Oh wait. They’re already over-booked following McCain around.

perroviejo on August 22, 2008 at 9:34 AM

Don’t you just love it when one liberal Democrat goes after another liberal Democrat?

I never thought I would see the day I would be cheering someone like Jerry Brown on, but I hope he makes Schumckie Schumer lose his frigging shirt on this one, and possibly even his coveted Senate seat when the Senate Ethics Committee goes after him next.

pilamaye on August 22, 2008 at 9:39 AM

A public official does NOT speak of the potential failure of any public institution, especially a bank. Nor should anyone. IndyMac may well have been financially struggling, but Chuck the Schmuck’s loose lips insured that this institution failed.

mimi1220 on August 22, 2008 at 9:43 AM

I think this is only the tip of the iceberg. The Dems have been trying to bring the economy down for over 2 years. They were having a very difficult time doing so and they needed to do it to get the middle class vote. Schumer opened his mouth one too many times.

Connie on August 22, 2008 at 9:49 AM

The Dems have been trying to bring the economy down for over 2 years.

Connie on August 22, 2008 at 9:49 AM

You’re being too nice to them.

Way back in early 2004, Kerry called the US economy the “worst economy ever”, and turned over a rock to find some weird misery index to “prove it”.

progressoverpeace on August 22, 2008 at 9:56 AM

Brown’s anti-welfare stance and support of a flat tax always made me admire him more than your average liberal politician, along with his famously simplistic living circumstances as the Governor of California. Compared to the likes of Reid and Pelosi today, Brown really deserves the title of “Maverick”, since you wouldn’t ever see a Kennedy going after Schumer.

Heh, Moonbeam.

MadisonConservative on August 22, 2008 at 10:01 AM

This is just one more political move by Schumer to bring down the current administration. Any chance the bank had to survive the current mortgage fiasco, which incidentally was started by the liberals like Schumer, was ended when Schumer shot off his mouth and began a run on the banks ready assets. He is just as guilty as if he pulled a gun and robber that bank. He belongs in jail.

Wade on August 22, 2008 at 10:05 AM

Lizard face may finally get his comeuppance.

fossten on August 22, 2008 at 10:12 AM

Dear Attorney General Brown: For the love of all that is holy, I beg you to get Chuck Schumer’s Spitting Image puppet face off my television and behind bars. I dream of the day I can turn on the news and not see his mug straining to get the most camera time. Sincerely, doppelganglander

doppelganglander on August 22, 2008 at 10:12 AM

I’d love to see Chucky-Schmucky Schumer do the frog-march.
He got away with raiding Steele’s private data, among many other sins, so it’d be nice if he got nailed.
However Lib golden rule #2 is “Thou shalt not turn on your fellow lib”.

Iblis on August 22, 2008 at 10:19 AM

Eh. I don’t think they can make a case against Schumer. I also believe Jerry Brown is motivated by politics in that he intends to run for governor again and this gives him plenty of free publicity.

Blake on August 22, 2008 at 10:28 AM

progressoverpeace on August 22, 2008 at 9:56 AM

The economy is cyclic, so any downturn is always going to play to some candidate’s advantage. But right after Kerry’s loss, the Dems started their little focus groups to go after the middle class and after Christians. When the campaign for ’08 got off the ground, Hillary started to tell the middle class how bad things were for them. The problem was that she couldn’t convince them that they were hurting because they weren’t. This downturn has been manipulated right from the very top of Dem $.

Connie on August 22, 2008 at 10:32 AM

The FDIC estimates that the failure of IndyMac will cost it between 4 to 8 Billion dollars. Those costs will be passed on to the public, in the form of higher fees.

Next time your bank sends you a letter advising you that it is raising fees, be sure to send a little “thank you” out to Chuckie Schumer. He got his ugly mug on t.v. (and protected his big NY bank donors), and we’re all going to be paying for it.

AZCoyote on August 22, 2008 at 10:37 AM

No sweat. Even if fired by the voters (unlikely in NY) Schumer can always get a job with the NYT leaking government terrorist wiretap secrets.

whitetop on August 22, 2008 at 10:44 AM

Schumer appears like he’s about to try to screw his big head on straight.

New York has a real gift for electing sleaze merchants.

Hening on August 22, 2008 at 11:09 AM

http://www.webloggin.com/images/politicians/schumerMunster.jpg

Could it be?

diogenes on August 22, 2008 at 11:27 AM

When the IndyMac issue first broke I wrote to my two Senators – Kyl and McCain – and asked them to begin an ethics investigation into Chuckie. To date I’ve heard nothing from them, which is no big surprise. For once I’m on Brown’s side.

Ivan the Terrible on August 22, 2008 at 12:00 PM

Schumer/IndyMac provides Republicans with a huge teaching moment right now. Don’t blow it. Use it!

Connie on August 22, 2008 at 12:15 PM

Ed sez: ‘…his role in the collapse of IndyMac and the costs to taxpayers should force New York voters to consider his retirement in the next election.’

.
Schumer will continue to be elected in New York until that time Schumer decides to move on to do damage elsewhaere or departs to the hereafter.   If/when that day comes it will not matter.   New Yorker’s will find and elect another ‘Schumer’ to replace this despicable pol.

martywd on August 22, 2008 at 1:30 PM

Jerry’s gearing up to run for Gov, he’s not going to do anything but talk.

mojo on August 22, 2008 at 2:40 PM

However, his role in the collapse of IndyMac and the costs to taxpayers should force New York voters to consider his retirement in the next election. If Brown can help make that clearer to Schumer’s electorate, so much the better.

Yeah, good luck with that.

artlover on August 22, 2008 at 2:57 PM

This story is sweet.

I have ‘liberal’ friends who were in various positions within the real estate market that were severely affected by this situation. Some have had to move back home with their parents and try to avoid foreclosures because the money dried up so fast. People weren’t getting paid for more than 3 months worth of work.

You cannot begin to understand how this affected many people in Southern California. Ex-Gov. Jerry Brown, I feel, is not just doing it because he’s a “good guy” who wants to right and wrong but BECAUSE a lot of those people hurt vote Democrat and DO blame Sen. Schumer for the collapse. The way that went down was not a pretty sight.

Sultry Beauty on August 22, 2008 at 4:39 PM

Good. I hope California goes after Chucky Cheese, and drops him in San Francisco during a Folsom Street parade. Couldn’t happen to a nicer DemOrat!

byteshredder on August 22, 2008 at 11:18 PM

Rush linked to this – good news! He won’t let it die.

Connie on August 22, 2008 at 11:57 PM

Frankly, I don’t think Schumer did anything for which he can be prosecuted.

It would depend upon what kind of information Schumer had upon which he based his “predictions” about IndyMac, how and in what capacity he received that information, and what legal obligations having that information placed upon him.

Not knowing the answers to these questions, I can’t say… But I can fathom circumstances in which what Schumer did could be criminal.

seanrobins on August 23, 2008 at 12:10 AM

Go Jerry! Get Chuckie.

Travis1 on August 23, 2008 at 12:36 AM

It’s NY. One chuckie out, another chuckie will replace him. His constituents keep voting him in don’t they? Why does anyone feel sorry for NY voters who vote for him?

tx2654 on August 23, 2008 at 8:14 AM