Sen. Schumer blames OTS for IndyMac's failure

WASHINGTON Fri Jul 11, 2008 7:54pm EDT

WASHINGTON (Reuters) - Sen. Charles Schumer on Friday blamed IndyMac Bancorp Inc's IMB.N failure on its main regulator, the Office of Thrift Supervision, and said it should start doing its job.

"If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," said Schumer, a Democrat from New York. "OTS should start doing its job to prevent future IndyMacs."

The Federal Deposit Insurance Corp took control of IndyMac on Friday and will run the bank until it can find a buyer.

(Reporting by Rachelle Younglai; Editing by Braden Reddall)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Pictures