Indymac's failure was WC's fault!

You have to realize how difficult it is for me, as a WC correspondent, to agree with Sheila Bair, FDIC head, and admit the true reason Indymac Bank went out of business. It was not faulty regulation, fraudulent lending practices, a completely bogus ratings system, or evil little orange midgets. It was BLOGGERS! It’s the WC's of the world that cause these banks to go under. And once we realize that and get rid of this pesky little “Freedom of Speech” language in the Constitution, we will be able to maintain a successful and productive country. Mish quotes:

The federal agency insuring bank deposits learned that it can't afford to ignore the blogs following its seizure this month of IndyMac Bank, the largest bank failure since the 1980s.

"The blogs were a bit out of control," Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the San Francisco Business Times after a speech in San Francisco this week.

That's putting it mildly. Following the FDIC's takeover of IndyMac on July 11, widely followed blogs were speculating on bank runs on some of California's largest banks based on nothing more than people waiting for their branch to open or large deposits moving between financial institutions.

The FDIC plans to pay closer attention to the blogosphere in the future.

"We're very mindful of the media coverage and blogs in controlling misinformation. All I can say is were going to continue to stay on top of it," Bair said. "The misinformation that came out over the weekend fed a lot of depositors' fears."


WC, YOU ARE ON NOTICE! (Can I do that?) I certainly hope this doesn’t impact my status as a loyal and productive field correspondent sir.

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