Deleterious Effects of Lines outside IndyMac

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Last week, IndyMac bank in Pasadena, California, was taken over by the FDIC. It re-opened Monday, with police called to calm depositors standing in line. The run on deposits apparently was triggered when Charles Schumer (D-NY) raised questions about its solvency. The Senator blames the bank for its own problems, saying it engaged in "poor and loose lending practices" for years. Gretchen Morgenson, Pulitzer Prize-winning business columnist and reporter for the New York Times, has more on perceptions, realities and consumer confidence.




Warren Olney