FDIC accuses 4 former executives of failed IndyMac of negligence in making loans
By APWednesday, July 14, 2010
FDIC sues 4 former IndyMac execs
WASHINGTON — Bank regulators have accused four former executives of failed IndyMac Bank of negligence in making loans to homebuilders and are seeking a total $300 million in damages.
The Federal Deposit Insurance Corp., which took over California-based IndyMac when it collapsed two years ago, filed the civil lawsuit against the four executives in federal court in Los Angeles. The suit is the FDIC’s first legal volley related to the wave of bank failures in the financial crisis, and an FDIC spokesman said Wednesday that more can be expected in the future.
The FDIC says in the suit that the four IndyMac officers “negligently” approved loans to homebuilders that had slim chance of being repaid.
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