California authorities have rebuffed a request to investigate whether Sen. Charles Schumer helped fuel IndyMac Bancorp Inc.’s collapse by expressing concerns about the major mortgage lender’s soundness.
The California Attorney General’s office said in a letter Thursday that there was ‘insufficient evidence’ to investigate the New York Democrat under a state law against making false statements or spreading rumors about a bank’s solvency.
Schumer’s statements in June 26 letters to bank regulators were true and apparently drawn from public information, Assistant Attorney General Thomas Greene wrote. He also noted that the U.S. Constitution protects members of Congress from being prosecuted or sued for remarks made in their official capacity.
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