IndyMac ex-chairman says he was told to backdate cash infusion

[bemildred]

Source: LAT

The former chairman of IndyMac Bank has alleged a key banking regulator "specifically directed" him to backdate $18 million in capital onto the Pasadena thrift's books to help prop up the company at the peak of the financial crisis.

Michael W. Perry, who is battling fraud allegations connected to the thrift's failure in 2008, said that cash was added to the balance sheet during the first quarter of 2008 even though the money arrived more than a month after the quarter closed. The regulator was Darrel W. Dochow, former Western regional director for the Office of Thrift Supervision, a U.S. Treasury Department agency that "had the final say regarding IndyMac Bank's capital levels," Perry said in a statement posted online.

After conferring with IndyMac's auditors on May 9, 2008, Dochow approved adding the $18 million to IndyMac's books, and "specifically directed Mr. Perry to amend the Bank's Thrift Financial Report for March 31, 2008," the statement said. IndyMac's first-quarter earnings report to investors, issued May 12, also included the extra dose of cash.

Dochow's approval of the cash infusion had been widely reported previously. But Perry's contention that Dochow "directed" its inclusion on IndyMac's books adds a new twist to his defense by suggesting that the action was required by regulators. The statement from Perry was first reported by the New York Times.




Read more: http://www.latimes.com/business/la-fi-indymac-dochow-20111124,0,4024131.story

[Angry Dragon]

1. How soon do the regulators and the bankers put themselves

in office??

When is the next bank crash that we can not pay ourselves out of??

When will it be that this country takes its last gasp of freedom??


edit: add
When will martial law be declared because the people are rioting in the streets
because it is the only way that they have left to get their country back??

[xchrom]

2. Recommend

[saras]

3. There's two of them that clearly, unequivocally belong in jail.

Each of them should have reported the other immediately if either suggested such an action.

[bemildred]

5. Yep, if that does not show a lawless business culture I don't know what does. nt

[sarcasmo]

4. Pretty sure he meant, prop it up to keep the shareholder happy..

Credit Union, don't delay move your money now!

[Hotler]

6. FUCKERS! n/t

[roseBudd]

7. OMG connection to Keating 5, from 100 to Blame Vanity Fair

"Because he covered up for the banks instead of regulating them. Darrel W. Dochow was the West Coast director of the Office of Thrift Supervision, directly responsible for overseeing the financial health and well-being of Washington Mutual, Countrywide Financial, IndyMac Bancorp, and Downey Savings and Loan. Under his watch, all would fail or require a rescue/bailout from a larger bank. So how did Dochow manage to miss the fact that these banks were in such trouble with their subprime mortgages? Actually, he didn’t miss the problem at all but helped to cover it up: As IndyMac was about to report its first-quarter results for 2008, the bank’s auditors discovered that IndyMac didn’t have enough cash in reserve to be considered a “well capitalized” institution. This would have set off alarms at the Treasury Department, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision. Instead, during a conference call on May 9, Dochow allowed IndyMac to cook its books, backdating $18 million it received in May to make it look as if the money had been on hand at the end of March. On May 12, 2008, IndyMac filed its falsified first-quarter results; on July 11, the bank collapsed, at a cost of $10.7 billion to U.S. taxpayers. Dochow was removed from his $230,000-a-year position on December 22 but stayed on the government payroll until he retired in March 2009. But here’s the really infuriating coda to all this: 20 years earlier, during the savings and loan scandals fo the late 1980s, Dochow had been demoted from his job as a regulator at the Federal Home Loan Bank Board (the Office of Thrift Supervision’s predecessor) when it was revealed he’d stopped an examination of Charles Keating’s bank, and overrode recommendations to seize the Lincoln Savings and Loan. Keating spent four-and-a-half years in prison for his shenanigans; the savings-and-loan scandals cost the federal government more than $100 billion."

[roseBudd]

8. I say Dochow was trying to prop up the Bush economy that was beginning the implosion

ln an attempt to kick the inevitable can down the road long enough to get past the 2008 election.

check this out

http://www.scribd.com/doc/48831416/Letter-to-the-Senate-Banking-Committee-on-IndyMac

[roseBudd]

9. kick for awesome DUer research.