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Home Exclusives Categories Contributors IndyMac Attack: Did Schumer, Paulson, Soros, and the CRL Kill the Bank and Profit From Its Collapse? by Andrew Mellon At the end of 2007, hedge fund billionaire John Paulson invested $15 million in the leftist non-profit, Center for Responsible Lending, their largest single donation ever. Around the same time, Paulson and his employees contributed over $100,000 to the Democratic Senatorial Campaign Committee, headed, at the time, by Sen. Chuck Schumer. Roughly six months later, CRL and Sen. Schumer both launched a highly public attack on the California-based mortgage lender, Indymac. The lender failed, wiping out the investment of thousands of people. Roughly six months after that, John Paulson, in partnership with George Soros, bought up the remnants of Indymac for pennies on the dollar. It is a drama that no longer surprises us, unfortunately. Wealthy investors use their access to elected officials and their checkbook to advocacy groups for private profit. But this story has a twist; a top execut ive of CRL when this deal went down, Eric S tein, is now working at the Treasury Department, heading up the proposed Consumer Financial Protection Agency. Mr. Stein will be the chief federal official designing regulations to protect consumers. Right. This is that story. Financial crises create opportuni ties. Prudent and discerning entrepreneurs who save their capital for a rainy day are able to acquire assets at firesale prices and put these assets to higher and better uses. Market forces cleanse wasteful malinvestments, innovative business models make existing ones obsolete and the economy roars forward all the stronger for it. But while market entrepreneurs generally prosper during times of great dislocation, ultimately to the benefit of all participants in the economy, today poli tical entrepreneurs have hijacked the economic system. The politically connected elites have used this downturn to carry out a massive wealth transfer from the people to the public and privat e sector s, fleecing the middle class for their own enrichment. In their hypocrisy, the long ago small businesses that grew large because of free markets have helped chain these markets through lobbying for regulations and subsidies to shield themselves from competition and their own errors. This has occurred most egregiously in the financial sector, where there has been a veritable free-for-all in legalized political plunder . Those who understan d the illusory nature of our monetary and symbiotically related political and financial systems have clamored to profit as much as possible before the house of cards falls, with the sanction of our supposed representatives. The biggest asset bubble contributing to this Depression, occurring in housing, was largely attributable to artificially low interest rates, government agencies » Indy Mac Attack: Did Schu mer, Paulson, Soros, an d t he CRL Kill the Ba... http://biggovernmen t.com/amellon/2010/0 4/22/ indym ac-attack-di d-schum ... 1 of 11 3/28/2011 7:03 AM

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