NEW YORK (AP) - New York Sen. Charles Schumer won't face a
California investigation into whether he helped fuel IndyMac
Bancorp Inc.'s collapse by expressing concerns about the mortgage
lender's soundness.
The California Attorney General's office said in a letter
Thursday that there was "insufficient evidence" to investigate
Schumer. A Schumer spokesman declined to comment Saturday.
Some former IndyMac employees say Schumer's remarks in June 26
letters to regulators spurred a run on the bank that led to a
government takeover. They want the senator to be prosecuted under a
California law against making false statements about a bank's
solvency.
Assistant Attorney General Thomas Greene said Schumer's
statements were true and drawn from public information.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Twitter
Facebook