NEW YORK - New York Sen. Charles Schumer won't face a California investigation into whether he helped fuel IndyMac Bancorp Inc.'s collapse by expressing concerns about the mortgage lender's soundness.
The California Attorney General's office said in a letter that there was “insufficient evidence” to investigate Schumer. A Schumer spokesman declined to comment Saturday.
Some former IndyMac employees say Schumer's remarks in June 26 letters to regulators spurred a run on the bank that led to a government takeover. They want the senator to be prosecuted under a California law against making false statements about a bank's solvency.
Assistant Attorney General Thomas Greene said Schumer's statements were true and drawn from public information.
AP-ES-08-23-08 1858EDT
Some former IndyMac employees say Schumer's remarks in June 26 letters to regulators spurred a run on the bank that led to a government takeover. They want the senator to be prosecuted under a California law against making false statements about a bank's solvency.
Assistant Attorney General Thomas Greene said Schumer's statements were true and drawn from public information.
AP-ES-08-23-08 1858EDT
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