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Bloggers a buzz over possible Schumer investigation by Calif. AG
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Chuck Schumer (D)
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Jerry Brown (D)
SAN FRANCISCO (Legal Newsline)-- A standard comment from the California Attorney General's office has set bloggers across the country pounding their keyboards over the thought of Democratic Sen. Chuck Schumer being brought down from his powerful perch over his role in the demise of IndyMac Bancorp Inc.

Fifty-one former IndyMac employees sent California Attorney General Jerry Brown a letter - then later released the letter to various news outlets across the state - taking issue with Schumer's letter sent to the Federal Deposit Insurance Corp. questioning the company's ability to survive.

The well-publicized letter, the employees claim, sparked "a run on the bank" that assured its demise. The FDIC took over control of IndyMac on July 11 after more than $1.3 billion was withdrawn in less than two weeks.

The former employees asked Brown to investigate the New York senator's involvement.

The letter itself didn't ignite a firestorm of interest, but when Christine Gasparac, a spokesman for Brown said on Wednesday that the attorney general's office was reviewing the letter and would make a decision on whether to take action, the Internet sparked to life.

Conservative bloggers from Texas, Louisiana, New York and, of course, California, all gleefully reported the news of Brown's potential investigation, even while dismissing it.

"I am eager to see this become way overblown and result in the downfall of an American senator," one blogger wrote.

Another who also posted the story first reported by Reuters said, "Jerry Brown ... would like be governor again. He's an ardent Democrat and lefty and I don't think there's any chance he'd start an investigation against a powerful Democrat like Chuckie Schumer."

CRC Public Relations, the same group who works with the Republican National Committee, released the former IndyMac employees' letter to the press.

Schumer spokesman Brian Fallon told Reuters the public relations' firm involvement should raise skepticism about the merit of the letter itself.

"It certainly raises eyebrows that the firm promoting this letter is the same outfit that fueled the Swift Boat attacks and does work for the RNC," he said.



Filed Under: State AGs

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MORE NEWS HEADLINES:
+ Okla. AG defends his decision not to join mortgage settlement - 2/10   read more
+ Payday lender ruled in contempt of Wis. settlement - 2/10   read more
+ Bill limiting Miss. AG's authority dead for breaking rules - 2/10   read more
+ Vermont GOP wants Sorrell to look into possible union bullying - 2/10   read more
+ Madigan recovered more than $1M for workers in 2011 - 2/10   read more
+ Mass. AG recovered $5M from labor violations - 2/10   read more
+ Blog: Mortgage settlement not all that great - 2/9   read more
+ Report: Va. AG sues over health spa memberships - 2/9   read more
+ N.H. AG settles with PetSmart over cadmium allegations - 2/9   read more
+ Conn. utilities board rules for Jepsen's motion - 2/9   read more


IN THE SPOTLIGHT:
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Wednesday, February 08, 2012
PHILADELPHIA (Legal Newsline) - A roundtable of federal and state judges from across the country will convene at the posh Ritz Carlton on Feb. 9 to address topics such as "Can MDL's keep up with state court trial settings;" "Priority of deposition examination;" "State and federal cooperation;" and "Forum non conveniens."
Read more...


+ Study shows plaintiff bias in Philly courts - 2/6
+ Fannie Mae offers examples of routine dishonesty in its fight against lenders - 2/3
+ Quaker City courts have troubled history; some reject 'plaintiff-friendly' criticism - 1/31
+ Madison County asbestos docket feeds off intake firm referrals - 1/19
+ Torts conference set for Feb. 8 in Philly - 1/18
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