Calif. AG May Investigate Schumer in Bank Collapse

The attorney general of California, Jerry Brown, is looking into a request made by former employees of IndyMac Bancorp Inc. to investigate whether Senator Schumer caused the collapse of the bank when he sent the Federal Deposit Insurance Corp. a letter questioning the bank's ability to survive, Reuters reported.

Fifty-one former employees of the bank sent Mr. Brown a letter saying: "From the day [Schumer's] letter was made public on June 26 until the closure of the bank, a run on the bank took place and the failure became inevitable."

A spokesman for Mr. Brown, Christine Gasparac, said yesterday that the attorney general's office was reviewing the former employee's letter and would make a decision on whether to take action as early as next week, according to Reuters.