On June 26, 2008, Schumer took the extraordinary step of publicly releasing letters he had written to regulators regarding IndyMac Bank, the seventh largest savings and loan association and the ninth largest originator of mortgage loans in the United States, which he considered to be a severely troubled institution. Schumer wrote he was "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers and that the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac." Many depositors at IndyMac panicked or from another perspective justifiably acted and withdrew funds in the 11 days before IndyMac failed. An audit by the Treasury Department's Inspector General would find that the primary causes of IndyMac's failure were associated with its business strategy of originating and securitizing Alt-A loans on a large scale. When home prices declined in the latter half of 2007 and the secondary mortgage market collapsed, IndyMac was forced to hold $10.7 billion of loans it could not sell in the secondary market. IndyMac's reduced liquidity was further exacerbated when account holders withdrew $1.55 billion in deposits in a "run" on the thrift following the public release of the letter. While the run was a contributing factor in the timing of IndyMac's demise, the underlying cause of the failure was the unsafe and unsound manner in which the thrift was operated. Director of the Office of Thrift Supervision (OTS) John Reich immediately blamed IndyMac's failure on the release of the letter. Reich said Schumer gave the bank a "heart attack" and opined, "Would the institution have failed without the deposit run? We'll never know the answer to that question." Reich and top deputies later resigned or were removed amidst a Treasury Department audit and investigation revealing that Indymac had been allowed to backdate its financial reports. Schumer conceded his actions may have caused some depositors to withdraw their money prematurely, but suggested that "if OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today. Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs." He pointed out that "IndyMac was one of the most poorly run and reckless of all the banks ... It was a spinoff from the old Countrywide, and like Countrywide, it did all kinds of profligate activities that it never should have. Both IndyMac and Countrywide helped cause the housing crisis we're now in."