WASHINGTON — Treasury's inspector general has reported that its western regional director had approved the backdating of a capital infusion into the failed IndyMac Bank to avoid repercussions of a falling capital position.
IndyMac Bank failed in mid-July and cost the FDIC somewhere in the neighborhood of $9 billion dollars, according to the U.S. Treasury.
Darrell Dochow has been removed as regional director pending further inquiry.
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The report came in a letter from U.S. Treasury Department inspector general to Senator Charles Grassley (R-Iowa), ranking member of the Finance Committee. Grassley made the letter public, along with a letter from Office of Thrift Supervision Director John Reich.
"The inspector general says this backdating of a capital infusion to meet bank capitalization requirements with the blessing of the Office of Thrift Supervision was not an isolated incident," Grassley said in a comment about the letter. "What does that mean about the real financial condition of other banks? And what does it mean about the independence of the Office of Thrift Supervision? The role of the Office of Thrift Supervision, as the name says, is to supervise these banks, not conspire with them."
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