IndyMac Swift Boaters Strike Back!
Question: How any idiots does it take to change a light bulb at IndyMac?
Answer: 51>
This one is too good to pass up -- be sure you read the punch line after the excerpt via Reuters:
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.
The FDIC took control of IndyMac on July 11 after depositors withdrew more than $1.3 billion over 11 days. It was the third-largest bank failure in U.S. history. At the time, OTS Director John Reich blamed Schumer's letter for causing the run on the bank.
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."
Who is behind this "groundswell" of (former) IndyMac workers? It turns out that the employee letter was distributed to the media by CRC Public Relations -- yes, the group whose clients include the National Republican Congressional Committee, National Republican Senatorial Committee and the Republican National Committee.
And, CRC was the PR firm behind the company that published a book questioning 2004 Democratic presidential candidate John Kerry's Vietnam service on a swift boat. Yes, those despicable, embarrassing festering boils on the Americans body politics: Liars, cheats & traitors all.
Let's review: It wasn't the conflicts of interest, the outright fraud, or management's rampant criminality that sent Indy Mac belly up. It wasn't losing nearly a billion dollars this year alone. It wasn't the share prices tumbling 87% in 2007, and then losing another 95% this year-to-date. And of course, the loss of ~$30 billion dollars had nothing to do with this.
It was the Senator's letter in June that was the cause of the collapse.
Man, these swift boat guys are a dangerous combination of rabidly partisan, utterly ethicless, economically clueless -- and about as dumb as lawn furniture. They make you proud to be an American.
>>
UPDATE: August 21, 2008 10:24am
You either help the public get to the facts, and achieve an understanding closer to objective reality, or you do not. If you actively seek to muddy the waters, if you make false and/or unsubstantiated charges directly contradicted by the bulk of the evidence, you earn my ever lasting ire.
Instead of listening to rabid partisans, consider neutral organizations like Fact Check.org.
One last note: My politics are that of a moderate centrist, and I detest the partisan nonsense. Garbage comments will be deleted and banned with extreme prejudice.
>
Previously:
My Experience at Indy Mac: Fraud, Corruption, Criminality (July 2008)
http://bigpicture.typepad.com/comments/2008/07/appraisers-wows.html
Video: IndyMac CEO Interview on CNBC (September 2006)
http://bigpicture.typepad.com/comments/2008/07/video-indymac-c.html
Idiots Fiddle While Rome Burns (July 2008)
http://bigpicture.typepad.com/comments/2008/07/idiots-fiddle-w.html
Source:
California mulls probing senator over IndyMac crash
John Poirier
Reuters, Aug 20, 2008 6:51pm
http://www.reuters.com/article/politicsNews/idUSN2045763020080820
Thursday, August 21, 2008 | 09:15 AM | Permalink
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Comments
Well said, Barry. Next thing you know, McCain will be questiuoning Schumer'. s love of country
Posted by: larster | Aug 21, 2008 9:23:30 AM
Time to gather a rabble and get the pitchforks out
DJF
Posted by: Declan Fallon | Aug 21, 2008 9:36:46 AM
Barry, are you having memory failure on Senator Chuck Schumer's role in loosening mortgage qualification standards?
Talk about calling the kettle black...
~~~
BR: How about some details please:
Legislation, excerpt, URL -- ANYTHING?
Posted by: Movie Guy | Aug 21, 2008 9:38:22 AM
You know what's truly scary though? The amazing numbers of sheeple out there who believe this stuff and vote accordingly. We have truly become an Idiocracy. The toxic cocktail of ignorance, arrogance, and stupidity has taken over this country. We should all be afraid of the direction of this country if things don't change soon. Far too many stupid, ignorant, arrogant people have sway over the direction of this country now. They've become their own voting bloc. Scary.
Posted by: Jeff M. | Aug 21, 2008 9:41:13 AM
Well said. They are the political equivalent to the KKK.
Posted by: Stuart | Aug 21, 2008 9:43:48 AM
BTW, can anyone link to a definitive debunking of the accusations of the Swift Boaters? A cursory examination of wikipedia only results in the description of the term and the controversy which created and surrounds it, not any sort of evidence that the folks making accusations against Kerry were actually lying.
Posted by: Dr. Kenneth Noisewater | Aug 21, 2008 9:52:09 AM
I know this is somewhat off topic but has to be called out given the outrageous nature. Didn't Thain say just a few weeks ago that they don't need further capital.... C'mon.. Enough already. Long past the time to hold these guys accountable.
MER Merrill Lynch: Thain to meet South Korean sovereign fund chief - DJ (24.41 ) -Update-
DJ reports Merrill Lynch chief executive John Thain will have meetings with South Korea's sovereign wealth fund and key government officials during a visit to the country in the third week of September, Korean officials said.
Posted by: Stuart | Aug 21, 2008 9:54:34 AM
BR,
These guys do to corrupt politicians what you (and others) do to corrupt capitalists. They call them out, shed light on their fraud, and attempt to hold them accountable.
I don't know your motivation for ranting about bad corporate actors, and I don't care. Exposing them is beneficial to our system and our society. The same holds for those who expose shameful politicians.
In some ways, these swift boaters are doing a tougher job. You've gained notariety and adolation for calling out capitalist crooks. These guys get nothing but insults for burning the crooked politicians.
I seem to have missed your anger when similar folks made up stories about John McCain having an adulterous affair. Could it be you only despise political hacks of one flavor?
~~~
BR: Please explain how the adulterous affair was relevant to the economy or capital markets.
If I despise political hacks of a particular flavor, its those that are in power. This is especially true considering the tremendous job done over the past 8 years.
My beef isn't a left/right GOP/Dem issue -- its an up/down, competent/incompetent issue.
Posted by: Russ | Aug 21, 2008 9:58:21 AM
"Man, these swift boat guys are ...."
Gosh, you'd almost think they were some sort of 'radical fundamentalist extremeists' of some sort wouldn't ya?
Posted by: Bob A | Aug 21, 2008 9:58:36 AM
Well, I'm with the Dr. up there.
Kerry could have "debunked" the Swift boat guys if he released his military records...waiting...waiting...
Since he couldn't have been bothered to actually prove they were as despicable as Kerry claimed they were, well, in my book for a politician that's as good as confirming what the Swiftboat guys said.
Of course Schumer didn't directly cause Indymac's failure either. It would have failed eventually, but he probably hastened its demise.
Think of Schumer as Kevorkian.
Posted by: David | Aug 21, 2008 10:03:24 AM
You are falling for the second oldest trick -- proving a negative.
Someone who was awarded 3 purples hearts and a silver star does not have the burden of proof -- it lies on the accusers...
Posted by: Daltrey | Aug 21, 2008 10:03:49 AM
*Snif* Punch line?
Posted by: Darkness | Aug 21, 2008 10:09:26 AM
1. Blaming Schumer for IndyMac's failure is pretty much the same as saying: "That building would never have burned down if you hadn't pointed out it was on fire!"
2. Swift Boat defenders: how do you "fake" a shrapnel wound as Kerry was accused of doing? Worthless, reactionary scum.
Posted by: Cato | Aug 21, 2008 10:10:12 AM
IndyMac are a bunch of whiny bitches, but if you're going to reject out-of-hand any report driven by PR firms with partisan affiliations, the newspapers might as well be a lot smaller (without objection from me). Oh, and while I think what happens in Vietnam should stay in Vietnam, I'm curious to know whether you think Senator Kerry was ever in Cambodia.
Posted by: Namazu | Aug 21, 2008 10:11:17 AM
@Daltrey: Several posters on this one blog entry basically are proving my earlier point (see above). How sad.
Posted by: Jeff M. | Aug 21, 2008 10:12:37 AM
Here's a site that pretty much debunks EVERY SINGLE FACT that the Swiftboat liars said.
http://swiftvets.eriposte.com/
Posted by: edhopper | Aug 21, 2008 10:14:19 AM
@m: Thanks for making my earlier point, but the FOUR posts are a tad much, no?
~~~
B: That junk was deleted & banned
Posted by: Jeff M. | Aug 21, 2008 10:21:20 AM
Judging by the rabid comments, looks like BR struck a nerve.
I suppose when fabrications about McCain's affairs affect finance, BR will write about them.
As to the "facts" behind the swiftboating of Kerry, see Republican-funded Group Attacks Kerry's War Record
The site attempts to be non-partisan in debunking campaign claims and succeeds to a large extent. BTW, it also debunks smears of McCain, although I didn't find anything addressing the alleged affair. As it has not become a campaign issue, it may have not been considered worth spending time on.
What really should be investigated are Fannie's and Freddie's large contributions to, and political influence over, members of Congress.
Posted by: Mike in NOLa | Aug 21, 2008 10:24:15 AM
If you go to CRC's website one of the case studies they promote is EverBank in FL which didn't get hurt by subprime loans (well not yet anyways) Maybe they should have talked to IndyMac about bad loans. lol.
Posted by: GB | Aug 21, 2008 10:28:31 AM
@Dr. K.N.: You have a situation with vague differences in memories of a traumatic event 35 years later, and you're looking for definitive proof one way or another? I suspect both camps were/are a bit off, and given the histories of the various parties and level of vitriol, I doubt you're going to get either side to change it's story.
It pretty much depends on what evidence you choose to believe: just google "swift boat story" or "swift boat lies" or something like that, read a few sites taking into account their partisan bent, and make your own decision. That's about the best you're going to get. And you won't change anyone opinion in the end.
As for the release of the military records proving anything... I thought it had already been "determined" (/sarcasm) that Kerry had his commanding officers in his back pocket due to his connections, thus any proof not in the GOP's favor would have been swiftly discounted anyway.
@Russ: McCain's adultery has been pretty extensively researched. http://www.latimes.com/news/nationworld/nation/la-na-divorce11-2008jul11,0,6546861.story
Again, 25 years ago, largely he said, she said. Few people are going to change their minds on whether it was adultery or something else.
Or did you mean Vicki Iseman?
Posted by: CH | Aug 21, 2008 10:33:50 AM
The only way to ever hope to get at the truth of a claim is to try to understand its context and the possible motivations of the one making it.
It should go without saying that every claim made in the political sphere should be viewed with a gimlet eye.
But that's what a free market for speech, etc. is about. Lay your claim and let the market evaluate it.
To turn it around: Would the outcome for Indymac have been any different had Schumer not weighed in?
How about John Kerry? Would he have been elected had he not been "swift-boated"? The political market could have just rejected the swift-boater's claims and elected him anyway, or not. We can't know with any precision whether the swift-boaters had any real impact at all.
IMO, Kerry would not have been elected regardless of believability of the swift-boaters--he was at best a mediocre candidate running against an incumbent during a sorta time of war. Not good odds, no matter what sort of attacks are made against you.
And Indymac would have failed anyway, as will Fannie and Freddie, soon enough, and it won't be because of the short-sellers or any other market commentaters. The immediate cause will be that the residential mortgage market turned against them, but that has been helped along by a management that has never understood risk.
Posted by: Donkei | Aug 21, 2008 10:35:50 AM
"Kerry could have "debunked" the Swift boat guys if he released his military records...waiting...waiting..."
If you bother to read the stories at the time, the fact is that Kerry only big mistake was to rely on the advice of his campaign manager (can't recall her name now), in spite of his gut feeling that this was just wrong. He paid a heavy price for that, didn't he?
So, I'm going to go with my pure gut feeling here.
On a broader level, the fact is that Democrats MUST develop a love for street-fighting. That is, goes lower than the Republicans, become allergic to GOP belts: every time they see one, they must feel an irresistible urge to hit below it, Kung-Fu style, and repeatedly until the opponent is gasping for air and mercy on the floor.
I'd rather have a civilized debate about REAL issues any day of the week. Alas, republicans have become totally addicted to innuendo, character assassination, and swift-boating. Who can blame them? It works...something that tells us a lot more about who we are as Americans (not very flattering isn't it?) than how dirty they can get.
BTW, for the Dems, it is the ONLY way they'll be able to get traction with a mainstream media that has, for all intents and purposes, become a puppet of the right-wing forces in this country. Maim, attack, make up stuff, sling the brown stuff until it sticks like Crazy Glue.
The motto of Democratic operatives must become:
"Chaos, confusion, despair among the enemy; fear, uncertainty and doubt among voters. My job here is done".
As an FYI, I hate every word I'm writing right now. But I'm very conscious of the fact that voters won't become smarter and republicans won't change their modus operandi anytime soon.
Life sucks at times, but this is the one we got for now.
Posted by: Francois | Aug 21, 2008 10:45:06 AM
Barry, stick to economics, and lay off the politics. The Swift Boaters did the nation a great service by torpedoing JFK with plain and simple facts.
~~~
BR: This is my source of facts: http://www.factcheck.org/article231.html
If you have another source that is more reliable and objective, please provide it.
Posted by: jg | Aug 21, 2008 10:48:56 AM
"Question: How many idiots does it take to change a light bulb at IndyMac?"
The answer is a tad more complicated than the one you offered Barry.
It takes 1 to hold the bulb, and 50 to rotate the ladder.
Posted by: Francois | Aug 21, 2008 10:49:23 AM
"The Swift Boaters did the nation a great service by torpedoing JFK with plain and simple facts"
Facts?
jg...don't use big words you obviously don't know anything about. Your head could explode.
Posted by: Francois | Aug 21, 2008 10:51:33 AM
