indymac

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</div><div>IndyMac, a contraction of Independent National Mortgage Corporation, was an American <a href="https://en.wikipedia.org/wiki/Bank" title="Bank" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">bank</a> based in California that failed in 2008 and was seized by the United States <a href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation" title="Federal Deposit Insurance Corporation" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Federal Deposit Insurance Corporation</a> (FDIC).Before its failure, IndyMac Bank was the largest <a href="https://en.wikipedia.org/wiki/Savings_and_loan_association" title="Savings and loan association" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">savings and loan association</a> in the <a href="https://en.wikipedia.org/wiki/Los_Angeles" title="Los Angeles" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Los Angeles</a> area and the seventh largest <a href="https://en.wikipedia.org/wiki/Mortgage_loan" title="Mortgage loan" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">mortgage</a> originator in the United States.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-1" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[1]</a> The failure of IndyMac Bank on July 11, 2008, was the fourth largest <a href="https://en.wikipedia.org/wiki/Bank_run" title="Bank run" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">bank failure</a> in <a href="https://en.wikipedia.org/wiki/United_States" title="United States" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">United States</a>,<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-2" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[2]</a> and the second largest failure of a regulated <a href="https://en.wikipedia.org/wiki/Savings_and_loan_association" title="Savings and loan association" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">thrift</a> at that time.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Veiga-3" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">[3]</a>It was heavily involved in <a href="https://en.wikipedia.org/wiki/Alt-A" title="Alt-A" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Alt-A</a> mortgages and <a href="https://en.wikipedia.org/wiki/Reverse_mortgage" title="Reverse mortgage" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">reverse mortgages</a> which in part resulted in its dramatic rise and has been suggested as the cause for its demise as large number of these questionable loans failed during the <a href="https://en.wikipedia.org/wiki/US_subprime_mortgage_crisis" class="mw-redirect" title="US subprime mortgage crisis" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">US subprime mortgage crisis</a> of 2007-2009.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-4" style="text-decoration: none; background: none;">[4]</a>The FDIC put the assets up for auction and the bulk of the business was sold to IMB HoldCo LLC who turned this into <a href="https://en.wikipedia.org/wiki/OneWest_Bank" title="OneWest Bank" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">OneWest Bank</a>. MNUCHINThe FDIC kept some of the assets and liabilities that it could not sell in a holding entity known as IndyMac Federal Bank, which would be slowly wound down.<div id="toc" class="toc" style="border: 1px solid rgb(162, 169, 177); background-color: rgb(248, 249, 250); padding: 7px; display: table; zoom: 1;"><div id="toctitle" style="direction: ltr; text-align: center;"><h2 style="background: none; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border: none; display: inline; line-height: 1.3;">Contents</h2>  [<a role="button" tabindex="0" id="togglelink" style="background: none; cursor: pointer;">hide</a>] </div><ul style="list-style-type: none; margin: 0.3em 0px; padding: 0px; list-style-image: none;"><li class="toclevel-1 tocsection-1" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#History" style="text-decoration: none; background: none;">1History</a><ul style="list-style-type: none; margin: 0px 0px 0px 2em; padding: 0px; list-style-image: none;"><li class="toclevel-2 tocsection-2" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Growth_and_acquisitions" style="text-decoration: none; background: none;">1.1Growth and acquisitions</a></li><li class="toclevel-2 tocsection-3" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Decline" style="text-decoration: none; background: none;">1.2Decline</a></li><li class="toclevel-2 tocsection-4" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Turning_point" style="text-decoration: none; background: none;">1.3Turning point</a></li><li class="toclevel-2 tocsection-5" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Collapse" style="text-decoration: none; background: none;">1.4Collapse</a></li><li class="toclevel-2 tocsection-6" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#US_Senator_accused_of_causing_run" style="text-decoration: none; background: none;">1.5US Senator accused of causing run</a></li><li class="toclevel-2 tocsection-7" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Backdating_scandal" style="text-decoration: none; background: none;">1.6Backdating scandal</a></li><li class="toclevel-2 tocsection-8" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Treasury_Department_Inspector_General.27s_investigation" style="text-decoration: none; background: none;">1.7Treasury Department Inspector General's investigation</a></li><li class="toclevel-2 tocsection-9" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#Other_investigations" style="text-decoration: none; background: none;">1.8Other investigations</a></li></ul></li><li class="toclevel-1 tocsection-10" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#See_also" style="text-decoration: none; background: none;">2See also</a></li><li class="toclevel-1 tocsection-11" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac#References" style="text-decoration: none; background: none;">3References</a></li><li class="toclevel-1 tocsection-12" style="margin-bottom: 0.1em;">4External links
S& L link</li></ul></div></div><div>
</div><div><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">History[<a href="https://en.wikipedia.org/w/index.php?title=IndyMac&action=edit&section=1" title="Edit section: History" style="text-decoration: none; background: none;">edit</a>]</h2>IndyMac Bank was founded as Countrywide Mortgage Investment in 1985 by <a href="https://en.wikipedia.org/wiki/David_S.Loeb" title="David S. Loeb" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">David S. Loeb</a> and <a href="https://en.wikipedia.org/wiki/Angelo_Mozilo" title="Angelo Mozilo" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Angelo Mozilo</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-5" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[5]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-6" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[6]</a> as a means of <a href="https://en.wikipedia.org/wiki/Cross-collateralization" title="Cross-collateralization" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">collateralizing</a> <a href="https://en.wikipedia.org/wiki/Countrywide_Financial" class="mw-redirect" title="Countrywide Financial" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Countrywide Financial</a> loans too big to be sold to <a href="https://en.wikipedia.org/wiki/Freddie_Mac" title="Freddie Mac" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Freddie Mac</a> and <a href="https://en.wikipedia.org/wiki/Fannie_Mae" title="Fannie Mae" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Fannie Mae</a>. In 1997, Countrywide spun off IndyMac as an independent company run by Mike Perry, who remained its CEO until the downfall of the bank in July 2008.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Paletta-7" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[7]</a> "Mac" is an established contraction for "Mortgage Corporation", usually associated with <a href="https://en.wikipedia.org/wiki/Government_sponsored_entities" class="mw-redirect" title="Government sponsored entities" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Government sponsored entities</a> such as "Freddie Mac" (<a href="https://en.wikipedia.org/wiki/Federal_Home_Loan_Mortgage_Corporation" class="mw-redirect" title="Federal Home Loan Mortgage Corporation" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Federal Home Loan Mortgage Corporation</a>) and "Farmer Mac" (<a href="https://en.wikipedia.org/wiki/Federal_Agricultural_Mortgage_Corporation" title="Federal Agricultural Mortgage Corporation" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Federal Agricultural Mortgage Corporation</a>). Indymac, however, had always been a private corporation with no relationship to the government.<h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Growth and acquisitions[<a href="https://en.wikipedia.org/w/index.php?title=IndyMac&action=edit&section=2" title="Edit section: Growth and acquisitions" style="text-decoration: none; background: none;">edit</a>]</h3>In July 2000, IndyMac Mortgage Holdings, Inc. acquired SGV Bancorp, the parent of First Federal Savings and Loan Association of San Gabriel Valley. IndyMac changed its name to IndyMac Bank and became the ninth largest bank headquartered in California.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-8" style="text-decoration: none; background: none;">[8]</a> IndyMac Bank, operating as a combined <a href="https://en.wikipedia.org/wiki/Savings_and_loan_association" title="Savings and loan association" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">thrift</a> and <a href="https://en.wikipedia.org/wiki/Mortgage_bank" title="Mortgage bank" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">mortgage bank</a>, provided lending for the purchase, development, and improvement of single-family housing. IndyMac Bank also issued secondary mortgages secured by such housing, and other forms of consumer credit.IndyMac Bancorp, a <a href="https://en.wikipedia.org/wiki/Holding_company" title="Holding company" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">holding company</a> headquartered in <a href="https://en.wikipedia.org/wiki/Pasadena,California" title="Pasadena, California" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Pasadena, California</a>, eventually acquired:<ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" background-color="background-color" rgb="rgb" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;">Financial Freedom, an originator and servicer of <a href="https://en.wikipedia.org/wiki/Reverse_mortgage" title="Reverse mortgage" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">reverse mortgage</a> loans, on July 16, 2004;</li><li style="margin-bottom: 0.1em;">New York Mortgage Company, an East Coast mortgage bank, on April 2, 2007;</li><li style="margin-bottom: 0.1em;">Barrington Capital Corporation, a West Coast mortgage bank, in September 2007.</li></ul><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Decline</h3>The primary causes of IndyMac’s failure were largely associated with its business strategy of originating and securitizing <a href="https://en.wikipedia.org/wiki/Alt-A" title="Alt-A" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Alt-A</a> loans on a large scale. This strategy resulted in rapid growth and a high concentration of risky assets. From its inception as a savings association in 2000, IndyMac grew to the seventh largest savings and loan and ninth largest originator of mortgage loans in the United States. During 2006, IndyMac originated over $90 billion of mortgages.IndyMac’s aggressive growth strategy, use of Alt-A and other nontraditional loan products, insufficient underwriting, credit concentrations in residential real estate in the California and Florida markets, and heavy reliance on costly funds borrowed from the Federal Home Loan Bank (FHLB) and from brokered deposits, led to its demise when the mortgage market declined in 2007.IndyMac often made loans without verification of the borrower’s income or assets, and to borrowers with poor credit histories. Appraisals obtained by IndyMac on underlying collateral were often questionable as well. As an Alt-A lender, IndyMac’s business model was to offer loan products to fit the borrower’s needs, using an extensive array of risky option-adjustable-rate-mortgages (option ARMs), subprime loans, 80/20 loans, and other nontraditional products. Ultimately, loans were made to many borrowers who simply could not afford to make their payments. The thrift remained profitable only as long as it was able to sell those loans in the secondary mortgage market. IndyMac resisted efforts to regulate its involvement in those loans or tighten their issuing criteria: see the comment by Ruthann Melbourne, Chief Risk Officer, to the regulating agencies.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-ustreas.gov-9" style="text-decoration: none; background: none;">[9]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-10" style="text-decoration: none; background: none;">[10]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-11" style="text-decoration: none; background: none;">[11]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Turning point</h3>May 12, 2008, in a small note in the "Capital" section of its what would become its last <a href="https://en.wikipedia.org/wiki/10-Q" class="mw-redirect" title="10-Q" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">10-Q</a> released before receivership, IndyMac revealed - but did not admit - that it was no longer a well-capitalized institution and that it was headed for insolvency.IndyMac reported that during April 2008, <a href="https://en.wikipedia.org/wiki/Moody%27s" class="mw-redirect" title="Moody's" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Moody's</a> and <a href="https://en.wikipedia.org/wiki/Standard%26_Poor%27s" title="Standard & Poor's" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Standard & Poor's</a> downgraded the ratings on a significant number of <a href="https://en.wikipedia.org/wiki/Mortgage-backed_security" title="Mortgage-backed security" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Mortgage-backed security</a> (MBS) bonds including $160 million of those issued by Indymac and which the bank retained in its MBS portfolio. Indymac concluded that these downgrades would have negatively impacted the Company's risk-based capital ratio as of June 30, 2008. Had these lowered ratings been in effect at March 31, 2008, Indymac concluded that the bank's capital ratio would have been 9.27% total risk-based. Indymac warned that if its regulators found its capital position to have fallen below "well capitalized" (minimum 10% risk-based capital ratio) to "adequately capitalized" (8-10% risk-based capital ratio) the bank might no longer be able to use brokered deposits as a source of funds. Indymac further warned that if its level of deposit liquidity was reduced in this way, the bank anticipated that it would reduce its assets and, most likely, curtail its lending activities.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-12" style="text-decoration: none; background: none;">[12]</a> This statement was comparable to those adopted by other Southern California banks that were experiencing liquidity problems, such as Pomona First Federal (PFF) and Vineyard Bank.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-13" style="text-decoration: none; background: none;">[13]</a>Senator <a href="https://en.wikipedia.org/wiki/Charles_Schumer" class="mw-redirect" title="Charles Schumer" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Charles Schumer</a> (D-NY) would later point out that brokered deposits made up more than 37 percent of Indymac's total deposits and ask the <a href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation" title="Federal Deposit Insurance Corporation" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Federal Deposit Insurance Corporation</a> (FDIC) whether it had considered ordering IndyMac to reduce its reliance on these deposits.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-14" style="text-decoration: none; background: none;">[14]</a> With $18.9 billion in total deposits reported on March 31,<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-15" style="text-decoration: none; background: none;">[15]</a> Senator Schumer would have been referring to a little over $7 billion in brokered deposits. While the breakout of maturities of these deposits is not known exactly, a simple averaging would have put the threat of brokered deposits loss to IndyMac at $500 million a month, had the regulator disallowed IndyMac from acquiring new brokered deposits on June 30.IndyMac had suffered its third-consecutive quarterly loss. The bank reported that nonperforming loans totaled $1.85 billion as of March 31, increasing 40.56% from just the previous quarter. In the <a href="https://en.wikipedia.org/wiki/10-Q" class="mw-redirect" title="10-Q" style="text-decoration: none; background: none;">10-Q</a> filing, the company stated it expected "to have an even higher level of non-performing loans in the future due to the continued market disruption".<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-16" style="text-decoration: none; background: none;">[16]</a>IndyMac was taking new measures to preserve capital, such as deferring interest payments on some preferred securities. Dividends on common shares had already been suspended for the first quarter of 2008, after being cut in half the previous quarter. The company still had not secured a significant capital infusion nor found a ready buyer.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-17" style="text-decoration: none; background: none;">[17]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-18" style="text-decoration: none; background: none;">[18]</a>According to IndyMac's 10-Q, the bank's risk-based capital ratio had dropped to 10.26% as of March 31, from 10.81% the previous quarter. This ratio, which factors in asset quality and loan-loss reserve coverage, needs to be at least 10% for an institution to be considered well-capitalized under regulatory guidelines. IndyMac reported that the bank's risk-based capital was only $47 million above the minimum required for this 10% mark. But it did not reveal some of that $47 million it claimed it had as of March 31, 2008 was actually a fiction.<h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Collapse</h3><table role="presentation" class="mbox-small plainlinks sistersitebox" style="clear: right; float: right; margin: 4px 0px 4px 1em; box-sizing: border-box; width: 238px; line-height: 1.25em; border: 1px solid rgb(170, 170, 170); background-color: rgb(249, 249, 249);"><tbody><tr><td class="mbox-image" style="border: none; padding: 2px 0px 2px 0.9em; text-align: center;"><a href="https://en.wikipedia.org/wiki/File:Wikinews-logo.svg" class="image" style="text-decoration: none; background: none;"><img alt="" src="https://upload.wikimedia.org/wikipedia/commons/thumb/2/24/Wikinews-logo.svg/40px-Wikinews-logo.svg.png" width="40" height="22" class="noviewer" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/2/24/Wikinews-logo.svg/60px-Wikinews-logo.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/2/24/Wikinews-logo.svg/80px-Wikinews-logo.svg.png 2x" data-file-width="759" data-file-height="415" style="border: none; vertical-align: middle;" /></a></td><td class="mbox-text plainlist" style="border: none; padding: 0.25em 0.9em; width: 158.625px;">Wikinews has related news: <a href="https://en.wikinews.org/wiki/IndyMac_Bank_placed_into_conservatorship_by_US_Government" class="extiw" title="wikinews:IndyMac Bank placed into conservatorship by US Government" style="text-decoration: none; background: none;">IndyMac Bank placed into conservatorship by US Government</a></td></tr></tbody></table>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. Its reduced liquidity was further exacerbated in late June 2008 when account holders withdrew $1.55 billion or about 7.5% of IndyMac's deposits.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-secinfo.com-19" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">[19]</a> This <a href="https://en.wikipedia.org/wiki/Bank_run" title="Bank run" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">“run”</a> on the thrift followed the public release of a letter from Senator Charles Schumer to the FDIC and OTS. The letter outlined the Senator’s concerns with IndyMac. 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.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-ustreas.gov-9" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">[9]</a>On June 26, 2008, Senator <a href="https://en.wikipedia.org/wiki/Charles_Schumer" class="mw-redirect" title="Charles Schumer" style="text-decoration: none; background: none;">Charles Schumer</a> (D-NY), a member of the <a href="https://en.wikipedia.org/wiki/Senate_Banking_Committee" class="mw-redirect" title="Senate Banking Committee" style="text-decoration: none; background: none;">Senate Banking Committee</a>, chairman of Congress' <a href="https://en.wikipedia.org/wiki/Joint_Economic_Committee" class="mw-redirect" title="Joint Economic Committee" style="text-decoration: none; background: none;">Joint Economic Committee</a> and the third-ranking Democrat in the Senate,<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-20" style="text-decoration: none; background: none;">[20]</a> released several letters he had sent to regulators, which warned that "the possible collapse of big mortgage lender IndyMac Bancorp Inc. poses significant financial risks to its borrowers and depositors, and regulators may not be ready to intervene to protect them". Some worried depositors began to withdraw money.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-21" style="text-decoration: none; background: none;">[21]</a>On July 7, 2008 IndyMac announced on the company blog that it:<ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" background-color="background-color" rgb="rgb" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;">Had failed to raise <a href="https://en.wikipedia.org/wiki/Capital(economics)" title="Capital (economics)" style="text-decoration: none; background: none;">capital</a> since its May 12, 2008 quarterly earnings report;</li><li style="margin-bottom: 0.1em;">Had been notified by bank and thrift regulators that IndyMac Bank was no longer deemed "well-capitalized";</li></ul>IndyMac announced the closure of both its retail lending and wholesale divisions, halted new loan submissions, and cut 3,800 jobs.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-nyt1-22" style="text-decoration: none; background: none;">[22]</a>On July 8, 2008, IndyMac announced the sale of its Retail Lending Group to <a href="https://en.wikipedia.org/wiki/Prospect_Mortgage_Company,LLC" class="mw-redirect" title="Prospect Mortgage Company, LLC" style="text-decoration: none; background: none;">Prospect Mortgage Company, LLC</a>.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-newsday-23" style="text-decoration: none; background: none;">[23]</a> That day, the bank's shares closed at $0.44 in trading on the <a href="https://en.wikipedia.org/wiki/New_York_Stock_Exchange" title="New York Stock Exchange" style="text-decoration: none; background: none;">New York Stock Exchange</a>, a loss of over 99% from its high of $50 in 2006.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-nyt3-24" style="text-decoration: none; background: none;">[24]</a> Additionally, analyst Paul J. Miller Jr. cut his price target on IndyMac to $0 from $1, rating the company's share price "Underperform".<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-bw1-25" style="text-decoration: none; background: none;">[25]</a> On July 9, <a href="https://en.wikipedia.org/wiki/Standard%26_Poor%27s" title="Standard & Poor's" style="text-decoration: none; background: none;">Standard & Poor's</a> cut IndyMac's counterparty credit risk rating to "CCC", just a few steps above default, from "B", the fifth highest junk level, and said it may cut them again.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-reu1-26" style="text-decoration: none; background: none;">[26]</a> The following day, the bank's shares reached a 52-week closing low of $0.31.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-yh1-27" style="text-decoration: none; background: none;">[27]</a>On July 11, 2008, citing liquidity concerns, the FDIC put IndyMac Bank into <a href="https://en.wikipedia.org/wiki/Conservatorship" title="Conservatorship" style="background: none; text-decoration: none;">conservatorship</a>. A <a href="https://en.wikipedia.org/wiki/Bridge_bank(United_States)" title="Bridge bank (United States)" style="background: none; text-decoration: none;">bridge bank</a>, IndyMac Federal Bank, FSB, was established to assume control of IndyMac Bank's assets, its secured liabilities, and its insured deposit accounts. The FDIC announced plans to open IndyMac Federal Bank, FSB on Monday July 14, 2008. Until then, depositors would have to access their insured deposits through ATMs, their existing checks, and their existing debit cards. Telephone and Internet account access would also be restored on Monday, when the bank reopened.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-nyt4-28" style="text-decoration: none; background: none;">[28]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-closeletter-29" style="text-decoration: none; background: none;">[29]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-fn1-30" style="text-decoration: none; background: none;">[30]</a> The FDIC guarantees the funds of all insured accounts up to US$100,000, and has declared a special advance dividend to the roughly 10,000 depositors with funds in excess of the insured amount, guaranteeing 50% of any amounts in excess of $100,000.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Veiga-3" style="text-decoration: none; background: none;">[3]</a> Yet, even with the pending sale of Indymac to IMB Management Holdings, an estimated 10,000 uninsured depositors of Indymac are still at a loss of over $270 million.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-articles.latimes.com-31" style="text-decoration: none; background: none;">[31]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-32" style="text-decoration: none; background: none;">[32]</a> In response, Congress increased the FDIC insurance limit to $250,000 for any bank that failed since January 1, 2008 as part of the Dodd-Frank Act, including retroactive payments to depositors for any amount up to the new limit not already covered by dividend distributions or the old $100,000 limit.With $32 billion in assets, IndyMac Bank is one of the largest bank failures in American history, after the 1984 failure of <a href="https://en.wikipedia.org/wiki/Continental_Illinois_National_Bank_and_Trust_Company" class="mw-redirect" title="Continental Illinois National Bank and Trust Company" style="background: none; text-decoration: none;">Continental Illinois National Bank</a>,<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-nyt4-28" style="text-decoration: none; background: none;">[28]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Kristof-33" style="text-decoration: none; background: none;">[33]</a> with $40 billion of assets, and the 1988 failure of <a href="https://en.wikipedia.org/w/index.php?title=American_Savings%26_Loan_Association&action=edit&redlink=1" class="new" title="American Savings & Loan Association (page does not exist)" style="background: none; text-decoration: none;">American Savings & Loan Association</a> of <a href="https://en.wikipedia.org/wiki/Stockton,California" title="Stockton, California" style="background: none; text-decoration: none;">Stockton, California</a>.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Paletta-7" style="text-decoration: none; background: none;">[7]</a> due to large losses in <a href="https://en.wikipedia.org/wiki/Mortgage-backed_security" title="Mortgage-backed security" style="background: none; text-decoration: none;">mortgage-backed securities</a>.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-Markham-34" style="text-decoration: none; background: none;">[34]</a>IndyMac Bancorp filed for <a href="https://en.wikipedia.org/wiki/Chapter_7,Title_11,United_States_Code" title="Chapter 7, Title 11, United States Code" style="text-decoration: none; background: none;">Chapter 7 bankruptcy</a> on July 31, 2008.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-LaCapra-35" style="text-decoration: none; background: none;">[35]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">US Senator accused of causing run</h3>IndyMac's dire condition and the failure of regulators resulted in something of a <a href="https://en.wikipedia.org/wiki/Bank_run" title="Bank run" style="text-decoration: none; background: none;">bank run</a> after Senator <a href="https://en.wikipedia.org/wiki/Charles_Schumer" class="mw-redirect" title="Charles Schumer" style="text-decoration: none; background: none;">Charles Schumer</a>'s warned the public of them. IndyMac depositors, fearing the worst, withdrew about 7.5% of deposits from IndyMac.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-secinfo.com-19" style="text-decoration: none; background: none;">[19]</a> Shifting focus from the financial condition of the bank to Senator Schumer, regulators and others in the financial sector quickly criticized Schumer for publicly releasing his letters, which they attempted to discredit and claimed further destabilized the bank.Leading the criticism was <a href="https://en.wikipedia.org/wiki/John_M.Reich" title="John M. Reich" style="text-decoration: none; background: none;">John M. Reich</a>, director of the OTS, who said that the <a href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation" title="Federal Deposit Insurance Corporation" style="text-decoration: none; background: none;">Federal Deposit Insurance Corporation</a> (FDIC) and <a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision" title="Office of Thrift Supervision" style="text-decoration: none; background: none;">Office of Thrift Supervision</a> (OTS) "do not comment on open and operating institutions". Mr Reich spoke widely of "dissemination of incomplete or erroneous information" and "rumors and innuendo" and the "strict policy of privacy" at OTS and FDIC.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-36" style="text-decoration: none; background: none;">[36]</a>Mr. Reich would later be forced to remove OTS western regional director <a href="https://en.wikipedia.org/w/index.php?title=Darrel_Dochow&action=edit&redlink=1" class="new" title="Darrel Dochow (page does not exist)" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Darrel W. Dochow</a>, for improperly allowing 5 banks to make backdated capital adjustments. On February 12, 2009, Reich would resign and step down February 27, 2009 amidst a Treasury Department investigation and audit of OTS failures and misconduct. On March 26, 2009, Scott Polakoff - former OTS senior deputy director and chief operating officer, hired by Reich, who became acting director upon Reich’s departure - was removed and placed on leave, pending an expanded Treasury Department investigation and audit.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-bloomberg.com-37" style="text-decoration: none; background: none;">[37]</a> A February 26, 2009 report by the Office of Inspector General for the Treasury Department would later conclude that IndyMac was already a doomed institution and that <a href="https://en.wikipedia.org/wiki/Prompt_Corrective_Action" title="Prompt Corrective Action" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Prompt Corrective Action</a> should have been taken in May 2008. The IG dismissed the idea that Mr. Schumer's letters led to the downfall of the bank.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-38" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">[38]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Backdating scandal</h3>IndyMac backdated an $18 million contribution from its parent company in order to preserve the bank's appearance as a “well-capitalized” institution. Mr. Dochow allowed IndyMac Bank to receive $18 million from its parent company and book the money as if it had arrived by the end of the March 31 quarter when, in fact, it had arrived on May 9, only three days before IndyMac filed the 10-Q for that March 31 quarter. Had Mr. Dochow not allowed this irregular, retroactive contribution to capital, Indymac would have been forced to report that its capital had already slipped below the minimum level that regulators require for classifying banks as well capitalized, thus putting $6.8 billion in brokered deposits - or 37 percent of Indymac's total deposits - at risk, as noted in the previous section. It also would have prevented IndyMac from luring new customers by offering deposit rates which exceeded the limitations prescribed in FDIC regulations. In the final two months before IndyMac was placed into receivership it was allowed to bring in at least $90 million in new uninsured deposits.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-articles.latimes.com-31" style="text-decoration: none; background: none;">[31]</a>The irregularity allowed by Mr. Dochow let IndyMac hide from publicity the fact that the threat to IndyMac's brokered deposits was not just a possible outcome but was a situation which had already begun - months before the disclosure of Senator Schumer's concerns about OTS and IndyMac. Investigators reported that similar officially approved backdating occurred at four other institutions.Mr. Dochow played a central role in the <a href="https://en.wikipedia.org/wiki/Savings_and_Loan_crisis" class="mw-redirect" title="Savings and Loan crisis" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Savings and Loan crisis</a> of the 1980s, overriding a recommendation by federal bank examiners in San Francisco to seize <a href="https://en.wikipedia.org/wiki/Lincoln_Savings" class="mw-redirect" title="Lincoln Savings" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Lincoln Savings</a>, the giant savings and loan owned by <a href="https://en.wikipedia.org/wiki/Charles_Keating" title="Charles Keating" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Charles Keating</a>. Lincoln became one of the biggest institutions to collapse. Mr. Keating served four and a half years in prison before his fraud and racketeering convictions were overturned. He later pleaded guilty to more limited charges, and was sentenced to the time already served.<a href="https://en.wikipedia.org/wiki/William_K.Black" title="William K. Black" style="text-decoration: none; background: none;">William K. Black</a>, a senior bank regulator during the savings and loan crisis and the author of “The Best Way to Rob a Bank is to Own One,” said Mr. Dochow’s lenience highlighted the longstanding unwillingness of the Office of Thrift Supervision to take charge.“The O.T.S. did nothing effective to regulate any of the specialized large nonprime lenders,” Mr. Black said. “So what you got was what the F.B.I. accurately described as early as 2004 as an epidemic of mortgage fraud.”<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-39" style="text-decoration: none; background: none;">[39]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Treasury Department Inspector General's investigation</h3>On February 26, 2009, the Treasury Department's inspector general concluded that federal regulators failed to catch warning signs that presaged the IndyMac Bank's collapse. The U.S. government watchdog saidthe Pasadena, Calif., savings and loan pursued an overly aggressive growth strategy that included failing to verify borrowers' income and relying on expensive deposits to fund its operations. The Office of Thrift Supervision, IndyMac's regulator, recognized the red flags but did nothing to stop them, the Treasury inspector general said."We found that OTS identified numerous problems and risks, including the quantity and poor quality of nontraditional mortgage products," the report said. Yet the "OTS did not take aggressive action to stop those practices from continuing to proliferate," according to the report.The report also rejected much of the blame targeted at Sen. Charles Schumer (D., N.Y.) Mr. Schumer came under fire last year for making public a letter he sent to regulators questioning IndyMac's ability to stay afloat as a business.The Treasury inspector general found that the letter was a "contributing factor" in the timing of IndyMac's collapse, but that "the underlying cause of the failure was the unsafe and unsound manner in which the thrift was operated.""Also, the thrift was already on a course for probable failure by the time Mr. Schumer's letter was made public," the report said.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-40" style="text-decoration: none; background: none;">[40]</a>On March 27, 2009, A spokesman said the U.S. Treasury Inspector General is reviewing actions by the Office of Thrift Supervision on backdating banks’ capital injections after the regulator’s acting director was removed and placed on leave. Inspector General Eric Thorson gave findings “regarding certain actions by management” at OTS to Treasury Secretary Timothy Geithner, replaced Acting Director Scott Polakoff pending an investigation, according to separate statements. John Bowman, the deputy director and chief counsel, was named the agency’s acting director, OTS said. The OTS permitted five banks, including failed lender IndyMac Bancorp Inc., to revise capital reports for the first quarter to show higher levels after the period ended. The action allowed lenders, such as IndyMac, to avoid further regulatory restriction.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-bloomberg.com-37" style="text-decoration: none; background: none;">[37]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Other investigations[<a href="https://en.wikipedia.org/w/index.php?title=IndyMac&action=edit&section=9" title="Edit section: Other investigations" style="text-decoration: none; background: none;">edit</a>]</h3>On June 30, 2008, the Center for Responsible Lending, a Washington think tank, released a report compiling information from various lawsuits filed by customers and former employees of IndyMac Bank, and alleged that managers and supervisors were being pressured to approve loans or risk being fired.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-41" style="text-decoration: none; background: none;">[41]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-42" style="text-decoration: none; background: none;">[42]</a> Before its collapse, IndyMac denied the allegations in the report.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-43" style="text-decoration: none; background: none;">[43]</a>On July 16, 2008, an unnamed US Government official said that the FBI is investigating IndyMac for possible fraud. While it is not clear if the investigation began before the bank was taken over by the FDIC, the investigation appears to be focused on the company itself, and not individuals within the company.<a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-44" style="text-decoration: none; background: none;">[44]</a><a href="https://en.wikipedia.org/wiki/IndyMac#cite_note-45" style="text-decoration: none; background: none;">[45]</a><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">See also[<a href="https://en.wikipedia.org/w/index.php?title=IndyMac&action=edit&section=10" title="Edit section: See also" style="text-decoration: none; background: none;">edit</a>]</h2><ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" background-color="background-color" rgb="rgb" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/2008_United_States_bank_failures" class="mw-redirect" title="2008 United States bank failures" style="text-decoration: none; background: none;">2008 United States bank failures</a></li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Subprime_mortgage_crisis" title="Subprime mortgage crisis" style="text-decoration: none; background: none;">Subprime mortgage crisis</a></li></ul></div><div></div><div>wiki</div><div>Mozilo was born in <a href="https://en.wikipedia.org/wiki/New_York_City" title="New York City" style="text-decoration: none; background: none;">New York City</a>, the son of a <a href="https://en.wikipedia.org/wiki/Bronx" class="mw-redirect" title="Bronx" style="text-decoration: none; background: none;">Bronx</a> butcher. He received a Bachelor of Science degree from <a href="https://en.wikipedia.org/wiki/Fordham_University" title="Fordham University" style="text-decoration: none; background: none;">Fordham University</a> in 1960. In 1969, he and his former <a href="https://en.wikipedia.org/wiki/Mentorship" title="Mentorship" style="text-decoration: none; background: none;">mentor</a> <a href="https://en.wikipedia.org/wiki/David_S.Loeb" title="David S. Loeb" style="text-decoration: none; background: none;">David S. Loeb</a>, who had already started a mortgage lending company, founded Countrywide Credit Industries in New York. They later moved the headquarters to <a href="https://en.wikipedia.org/wiki/Pasadena,California" title="Pasadena, California" style="text-decoration: none; background: none;">Pasadena, California</a> and then to <a href="https://en.wikipedia.org/wiki/Calabasas,California" title="Calabasas, California" style="text-decoration: none; background: none;">Calabasas, California</a> in <a href="https://en.wikipedia.org/wiki/Los_Angeles_County" class="mw-redirect" title="Los Angeles County" style="text-decoration: none; background: none;">Los Angeles County</a>. Mozilo and Loeb cofounded <a href="https://en.wikipedia.org/wiki/IndyMac_Bank" class="mw-redirect" title="IndyMac Bank" style="text-decoration: none; background: none;">IndyMac Bank</a>, which was originally founded as Countrywide Mortgage Investment, before being spun off as an independent bank in 1997. IndyMac collapsed and was seized by federal regulators on July 11, 2008.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-2" style="text-decoration: none; background: none;">[2]</a>Since Countrywide was listed on the <a href="https://en.wikipedia.org/wiki/NYSE" class="mw-redirect" title="NYSE" style="text-decoration: none; background: none;">NYSE</a> in 1984, Mozilo sold $406 million worth of its stock, mostly obtained through stock option grants. $129 million of this was realized in the 12 months ending August 2007.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-morgenson8-7-3" style="text-decoration: none; background: none;">[3]</a>In the beginning, Countrywide was a pioneer in the nationwide non-bank mortgage industry. Mozilo was very concerned with the quality of credit borrowers and the quality of their loans. When subprime loans came onto the scene in the late 1980s (<a href="https://en.wikipedia.org/w/index.php?title=Guardian_S%26L&action=edit&redlink=1" class="new" title="Guardian S&L (page does not exist)" style="text-decoration: none; background: none;">Guardian S&L</a>) and 1990s (<a href="https://en.wikipedia.org/wiki/The_Money_Store(company)" title="The Money Store (company)" style="text-decoration: none; background: none;">The Money Store</a>), his company did not participate. He privately described the subprime loan mavericks of the 1990s as 'crooks'. However, his company began to lose business to the subprime lenders. He had to compete with them or keep losing market share. Thus, by the early 2000s (decade), Countrywide began using subprime loans.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-4" style="text-decoration: none; background: none;">[4]</a>Perhaps more than any single individual, Mozilo has come to symbolize, and bear the blame for, the <a href="https://en.wikipedia.org/wiki/Subprime_mortgage_crisis" title="Subprime mortgage crisis" style="text-decoration: none; background: none;">subprime mortgage crisis</a>. In a New York Times feature on October 20, 2008, <a href="https://en.wikipedia.org/wiki/Henry_G.Cisneros" class="mw-redirect" title="Henry G. Cisneros" style="text-decoration: none; background: none;">Henry G. Cisneros</a>, former secretary of <a href="https://en.wikipedia.org/wiki/United_States_Department_of_Housing_and_Urban_Development" title="United States Department of Housing and Urban Development" style="text-decoration: none; background: none;">HUD</a> and member of the Countrywide board of directors, described Mozilo as "sick with stress — the final chapter of his life is the infamy that's been brought on him, or that he brought on himself." <a href="https://en.wikipedia.org/wiki/CNN" title="CNN" style="text-decoration: none; background: none;">CNN</a> named Mozilo as one of the 'Ten Most Wanted: Culprits' of the 2008 financial collapse in the United States.,<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-5" style="text-decoration: none; background: none;">[5]</a> theory further supported in <a href="https://en.wikipedia.org/wiki/Inside_Job(2010_film)" title="Inside Job (2010 film)" style="text-decoration: none; background: none;">Inside Job</a>, an <a href="https://en.wikipedia.org/wiki/Academy_Award" class="mw-redirect" title="Academy Award" style="text-decoration: none; background: none;">Academy Award</a>-winning documentary on the global financial crisis.<h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">Compensation[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=2&editintro=Template:BLP_editintro" title="Edit section: Compensation" style="text-decoration: none; background: none;">edit</a>]</h2>Mozilo's compensation during the <a href="https://en.wikipedia.org/wiki/United_States_housing_bubble" title="United States housing bubble" style="text-decoration: none; background: none;">United States housing bubble</a> of 2001–06 later came under scrutiny. During that period, his total compensation (including salary, bonuses, options and restricted stock) approached $470 million.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-6" style="text-decoration: none; background: none;">[6]</a> His compensation also included payment for equity memberships and annual country club dues at <a href="https://en.wikipedia.org/wiki/Sherwood_Country_Club" title="Sherwood Country Club" style="text-decoration: none; background: none;">Sherwood Country Club</a> in <a href="https://en.wikipedia.org/wiki/Thousand_Oaks,CA" class="mw-redirect" title="Thousand Oaks, CA" style="text-decoration: none; background: none;">Thousand Oaks, CA</a>, The Quarry at La Quinta golf club in <a href="https://en.wikipedia.org/wiki/La_Quinta,California" title="La Quinta, California" style="text-decoration: none; background: none;">La Quinta, California</a> and at the <a href="https://en.wikipedia.org/wiki/Robert_Trent_Jones_Golf_Club" title="Robert Trent Jones Golf Club" style="text-decoration: none; background: none;">Robert Trent Jones Golf Club</a> in <a href="https://en.wikipedia.org/wiki/Gainesville,Virginia" title="Gainesville, Virginia" style="text-decoration: none; background: none;">Gainesville, Virginia</a>.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-7" style="text-decoration: none; background: none;">[7]</a>Mozilo testified before the <a href="https://en.wikipedia.org/wiki/United_States_House_Committee_on_Oversight_and_Government_Reform" title="United States House Committee on Oversight and Government Reform" style="text-decoration: none; background: none;">United States House Committee on Oversight and Government Reform</a> on March 7, 2008, calling reports of their pay "grossly exaggerated" in some instances and pointing out that they lost millions as well. He defended the pay: The compensation was a function of how the company did ahead of the mortgage crisis.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-cnnmorgenson8-7-8" style="text-decoration: none; background: none;">[8]</a><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">SEC accusation regarding insider sales[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=3&editintro=Template:BLP_editintro" title="Edit section: SEC accusation regarding insider sales" style="text-decoration: none; background: none;">edit</a>]</h2>Over many years, Mozilo sold hundreds of millions of dollars in stock personally,<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-Why_is_Countrywide_possibly_going_bankrupt.3F-9" style="text-decoration: none; background: none;">[9]</a> even while publicly touting the stock and using shareholder funds to buy back stock to support the share price. On June 4, 2009, the <a href="https://en.wikipedia.org/wiki/U.S.Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission" style="text-decoration: none; background: none;">U.S. Securities and Exchange Commission</a> charged him with <a href="https://en.wikipedia.org/wiki/Insider_trading" title="Insider trading" style="text-decoration: none; background: none;">insider trading</a> and <a href="https://en.wikipedia.org/wiki/Securities_fraud" title="Securities fraud" style="text-decoration: none; background: none;">securities fraud</a>.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-10" style="text-decoration: none; background: none;">[10]</a><a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-11" style="text-decoration: none; background: none;">[11]</a><h3 style="background: none rgb(255, 255, 255); margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Settlement with SEC[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=4&editintro=Template:BLP_editintro" title="Edit section: Settlement with SEC" style="text-decoration: none; background: none;">edit</a>]</h3>On October 15, 2010, Mozilo reached a settlement with the Securities and Exchange Commission over securities fraud and insider trading charges. Mozilo agreed to pay $67.5 million in fines, and accepted a lifetime ban from serving as an officer or director of any public company. It is the largest settlement by an individual or executive connected to the 2008 housing collapse. <a href="https://en.wikipedia.org/wiki/Robert_Khuzami" title="Robert Khuzami" style="text-decoration: none; background: none;">Robert Khuzami</a>, director of the SEC's Division of Enforcement, said in a statement that "Mozilo's record penalty is the fitting outcome for a corporate executive who deliberately disregarded his duties to investors by concealing what he saw from inside the executive suite." By settling the SEC charges, Mozilo will avoid a trial that could have provided fodder for future criminal charges.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-12" style="text-decoration: none; background: none;">[12]</a><a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-13" style="text-decoration: none; background: none;">[13]</a>The terms of the settlement allowed Mozilo to avoid acknowledgment of wrongdoing. Countrywide was to pay $20 million of the $67.5 million penalty because of an indemnification agreement that was part of Mozillo's employment contract.[<a href="https://en.wikipedia.org/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed" style="text-decoration: none; background: none;">citation needed</a>]In February 2011, the US dropped its criminal investigation into the facts behind the civil settlement.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-14" style="text-decoration: none; background: none;">[14]</a><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">Friends of Angelo (FOA) VIP program[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=5&editintro=Template:BLP_editintro" title="Edit section: Friends of Angelo (FOA) VIP program" style="text-decoration: none; background: none;">edit</a>]</h2><div role="note" class="hatnote" style="font-style: italic; padding-left: 1.6em; margin-bottom: 0.5em; background-color: rgb(255, 255, 255);">Further information: <a href="https://en.wikipedia.org/wiki/Countrywide_financial_political_loan_scandal" title="Countrywide financial political loan scandal" style="text-decoration: none; background: none;">Countrywide financial political loan scandal</a></div>In June 2008, <a href="https://en.wikipedia.org/wiki/Conde_Nast_Portfolio" class="mw-redirect" title="Conde Nast Portfolio" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Conde Nast Portfolio</a> reported that several influential lawmakers and politicians, including <a href="https://en.wikipedia.org/wiki/Senate_Banking_Committee" class="mw-redirect" title="Senate Banking Committee" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Senate Banking Committee</a> Chairman <a href="https://en.wikipedia.org/wiki/Christopher_Dodd" class="mw-redirect" title="Christopher Dodd" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Christopher Dodd</a>, <a href="https://en.wikipedia.org/wiki/Senate_Budget_Committee" class="mw-redirect" title="Senate Budget Committee" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Senate Budget Committee</a> Chairman <a href="https://en.wikipedia.org/wiki/Kent_Conrad" title="Kent Conrad" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Kent Conrad</a>, and former <a href="https://en.wikipedia.org/wiki/Fannie_Mae" title="Fannie Mae" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Fannie Mae</a> CEO <a href="https://en.wikipedia.org/wiki/James_A.Johnson(businessman)" class="mw-redirect" title="James A. Johnson (businessman)" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Jim Johnson</a>, received favorable mortgage financing from Countrywide by virtue of being "Friends of Angelo".<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-Countrywide.27s_Many.27Friends.27-15" style="text-decoration: none; background: none;">[15]</a><a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-CFC_Friends_Loans-16" style="text-decoration: none; background: none;">[16]</a><a href="https://en.wikipedia.org/wiki/Democratic_Party(United_States)" title="Democratic Party (United States)" style="text-decoration: none; background: none;">Democratic</a> Senator Dodd received a $75,000 reduction in mortgage payments from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes. Michael Moore's Capitalism: A Love Story shows on film that this was actually over a million dollars of a sweet-heart mortgage deal.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-Countrywide.27s_Many.27Friends.27-15" style="text-decoration: none; background: none;">[15]</a><a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-Dodd_Angelo.27s_Angel-17" style="text-decoration: none; background: none;">[17]</a> Dodd nonetheless called for stronger regulation of mortgage lenders and proposed that predatory lenders should face criminal charges.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-deal-18" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">[18]</a>Clinton Jones III, senior counsel of the House Financial Services Subcommittee on Housing and Community Opportunity, and "an adviser to ranking Republican members of Congress responsible for legislation of interest to the financial services industry and of importance to Countrywide." was given special treatment. Jones is now state director for federal residential-mortgage bundler Freddie Mac. <a href="https://en.wikipedia.org/wiki/Alphonso_Jackson" title="Alphonso Jackson" style="text-decoration: none; background: none;">Alphonso Jackson</a>, acting secretary of HUD at the time and long-time friend and Texas neighbor of President Bush, received a discounted mortgage for himself and sought one for his daughter. "In 2003, using V.I.P. loans for nearly $1 million apiece, <a href="https://en.wikipedia.org/wiki/Franklin_Raines" title="Franklin Raines" style="text-decoration: none; background: none;">Franklin Raines</a>, Fannie Mae’s chairman and C.E.O. from 1999 to 2004, twice refinanced his seven-bedroom home, which has a pool and movie theater."<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-deal-18" style="text-decoration: none; background: none;">[18]</a>Though Mozilo donated extensively to both parties during the Clinton Administration, he himself was reportedly a registered Republican. Speaker of the House <a href="https://en.wikipedia.org/wiki/Nancy_Pelosi" title="Nancy Pelosi" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Nancy Pelosi</a>'s son Paul Pelosi, Jr. also received a loan with Countrywide. <a href="https://en.wikipedia.org/wiki/Barbara_Boxer" title="Barbara Boxer" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Barbara Boxer</a>, <a href="https://en.wikipedia.org/wiki/Adam_H.Putnam" class="mw-redirect" title="Adam H. Putnam" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Adam H. Putnam</a>, <a href="https://en.wikipedia.org/wiki/Richard_C.Holbrooke" class="mw-redirect" title="Richard C. Holbrooke" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Richard C. Holbrooke</a>, <a href="https://en.wikipedia.org/wiki/James_E.Clyburn" class="mw-redirect" title="James E. Clyburn" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">James E. Clyburn</a>, and <a href="https://en.wikipedia.org/wiki/Donna_Shalala" title="Donna Shalala" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">Donna Shalala</a> are among those with mortgages from Countrywide. <a href="https://en.wikipedia.org/wiki/CBS_News" title="CBS News" style="background: none; text-decoration: none;">CBS News</a> has obtained the following list of then-<a href="https://en.wikipedia.org/wiki/Fannie_Mae" title="Fannie Mae" style="background: none; text-decoration: none;">Fannie Mae</a> employees whose names have been turned over to investigators as having received VIP loans from Countrywide:<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-19" style="text-decoration: none; background: none;">[19]</a><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">Other controversies[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=6&editintro=Template:BLP_editintro" title="Edit section: Other controversies" style="text-decoration: none; background: none;">edit</a>]</h2>Shortly after <a href="https://en.wikipedia.org/wiki/University_of_San_Diego" title="University of San Diego" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">University of San Diego</a> invited Mozilo to be the keynote speaker at a conference for "sustainable real estate", <a rel="nofollow" class="external text" href="http://www.disinvitemozilo.com/" style="background: linear-gradient(transparent, transparent) right center no-repeat, url("data:image/svg+xml,%3C%3Fxml%20version%3D%221.0%22%20encoding%3D%22UTF-8%22%20standalone%3D%22no%22%3F%3E%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20width%3D%2212%22%20height%3D%2212%22%3E%3Cpath%20fill%3D%22%23fff%22%20stroke%3D%22%2306c%22%20d%3D%22M1.5%204.518h5.982V10.5H1.5z%22%2F%3E%3Cpath%20d%3D%22M5.765%201H11v5.39L9.427%207.937l-1.31-1.31L5.393%209.35l-2.69-2.688%202.81-2.808L4.2%202.544z%22%20fill%3D%22%2306f%22%2F%3E%3Cpath%20d%3D%22M9.995%202.004l.022%204.885L8.2%205.07%205.32%207.95%204.09%206.723l2.882-2.88-1.85-1.852z%22%20fill%3D%22%23fff%22%2F%3E%3C%2Fsvg%3E"); text-decoration: none; padding-right: 13px;">DisinviteMozilo was created</a> in protest on January 10, 2008. Mozilo pulled out six days later. Shortly after that, Congress invited Mozilo to testify about his compensation. In May 2008, Mozilo made the news by accidentally hitting "reply" instead of "forward" in response to an <a href="https://en.wikipedia.org/wiki/E-mail" class="mw-redirect" title="E-mail" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">e-mail</a> from a distressed homeowner named Daniel Bailey of North Carolina. Bailey had created a hardship letter to request a <a href="https://en.wikipedia.org/wiki/Mortgage_modification" title="Mortgage modification" style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; text-decoration: none;">loan modification</a> from Mozilo on a website forum named LoanSafe.org. Bailey then sent his request directly to the Office of the President of Countrywide and this was Angelo Mozilo's reply.[<a href="https://en.wikipedia.org/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed" style="text-decoration: none; background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">citation needed</a>]<blockquote style="overflow: hidden; margin: 1em 0px; padding: 0px 40px;">"This is unbelievable. Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the internet. Disgusting."<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-20" style="text-decoration: none; background: none;">[20]</a></blockquote><h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">In media[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=7&editintro=Template:BLP_editintro" title="Edit section: In media" style="text-decoration: none; background: none;">edit</a>]</h2>In the documentary film <a href="https://en.wikipedia.org/wiki/Inside_Job(2010_film)" title="Inside Job (2010 film)" style="text-decoration: none; background: none;">Inside Job</a> Mozilo is cited as one of the persons responsible for the Economic Meltdown of 2008 and named in <a href="https://en.wikipedia.org/wiki/Time_Magazine" class="mw-redirect" title="Time Magazine" style="text-decoration: none; background: none;">Time Magazine</a> as one of the "25 People to Blame for the Financial Crisis". <a href="https://en.wikipedia.org/wiki/Cond%C3%A9_Nast_Portfolio" class="mw-redirect" title="Condé Nast Portfolio" style="text-decoration: none; background: none;">Condé Nast Portfolio</a> ranked Mozilo second on their list of "Worst American CEOs of All Time".<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-21" style="text-decoration: none; background: none;">[21]</a>In the 2011 four part investigative series, <a href="https://en.wikipedia.org/wiki/Al_Jazeera" title="Al Jazeera" style="text-decoration: none; background: none;">Al Jazeera</a> named Mozilo as one of the people responsible for popularising the trend of giving sub prime loans to the poor.<a href="https://en.wikipedia.org/wiki/Angelo_Mozilo#cite_note-22" style="text-decoration: none; background: none;">[22]</a>As of 2016 Angelo Mozilo maintains a residence in <a href="https://en.wikipedia.org/wiki/Santa_Barbara,California" title="Santa Barbara, California" style="text-decoration: none; background: none;">Santa Barbara, California</a> near the <a href="https://en.wikipedia.org/wiki/Montecito,California" title="Montecito, California" style="text-decoration: none; background: none;">Montecito</a> <a href="https://en.wikipedia.org/wiki/Country_Club" class="mw-redirect" title="Country Club" style="text-decoration: none; background: none;">Country Club</a>.<h2 style="background: none rgb(255, 255, 255); font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); line-height: 1.3;">See also[<a href="https://en.wikipedia.org/w/index.php?title=Angelo_Mozilo&action=edit&section=8&editintro=Template:BLP_editintro" title="Edit section: See also" style="text-decoration: none; background: none;">edit</a>]</h2><ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url("data:image/svg+xml,%3C%3Fxml%20version%3D%221.0%22%20encoding%3D%22UTF-8%22%3F%3E%0A%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20version%3D%221.1%22%20width%3D%225%22%20height%3D%2213%22%3E%0A%3Ccircle%20cx%3D%222.5%22%20cy%3D%229.5%22%20r%3D%222.5%22%20fill%3D%22%2300528c%22%2F%3E%0A%3C%2Fsvg%3E%0A"); background-color: rgb(255, 255, 255);"><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Subprime_mortgage_crisis" title="Subprime mortgage crisis" style="text-decoration: none; background: none;">Subprime mortgage crisis</a></li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Countrywide_financial_political_loan_scandal" title="Countrywide financial political loan scandal" style="text-decoration: none; background: none;">Countrywide financial political loan scandal</a></li></ul></div><div></div><div>David S. Loeb (January 19, 1924 – June 30, 2003<a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-1" style="text-decoration: none; background: none;">[1]</a>) was the co-founder of both <a href="https://en.wikipedia.org/wiki/Countrywide_Financial_Corp" class="mw-redirect" title="Countrywide Financial Corp" style="text-decoration: none; background: none;">Countrywide Financial Corp</a> and <a href="https://en.wikipedia.org/wiki/IndyMac_Bank" class="mw-redirect" title="IndyMac Bank" style="text-decoration: none; background: none;">IndyMac Bank</a> along with former <a href="https://en.wikipedia.org/wiki/Mentorship" title="Mentorship" style="text-decoration: none; background: none;">protégé</a> and longtime business partner <a href="https://en.wikipedia.org/wiki/Angelo_Mozilo" title="Angelo Mozilo" style="text-decoration: none; background: none;">Angelo Mozilo</a>.<a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-2" style="text-decoration: none; background: none;">[2]</a><a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-3" style="text-decoration: none; background: none;">[3]</a> Loeb served as President and Chairman of Countrywide from 1969 to 2000 and Chairman of IndyMac from its 1985 inception until his retirement in 2003.<a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-4" style="text-decoration: none; background: none;">[4]</a>Loeb graduated in 1943 from the <a href="https://en.wikipedia.org/wiki/Maine_Maritime_Academy" title="Maine Maritime Academy" style="text-decoration: none; background: none;">Maine Maritime Academy</a> with a bachelor's degree in nautical science and later served on the Academy's Board of Trustees. He was a benefactor of the Academy's Loeb-Sullivan School of International Business and Logistics. Maine Maritime awarded him an honorary doctorate in 2002. Loeb served as a navigator in the <a href="https://en.wikipedia.org/wiki/Merchant_Marines" class="mw-redirect" title="Merchant Marines" style="text-decoration: none; background: none;">Merchant Marines</a> during <a href="https://en.wikipedia.org/wiki/World_War_II" title="World War II" style="text-decoration: none; background: none;">World War II</a>. He received a bachelor's degree in accounting from <a href="https://en.wikipedia.org/wiki/New_York_University" title="New York University" style="text-decoration: none; background: none;">New York University</a> in 1951 and served on the Board of Overseers of the NYU/Stern School of Business where he <a href="https://en.wikipedia.org/wiki/Financial_endowment" title="Financial endowment" style="text-decoration: none; background: none;">endowed</a> a Professorship in Finance.<a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-5" style="text-decoration: none; background: none;">[5]</a>David Loeb was also active in <a href="https://en.wikipedia.org/wiki/Real_estate_development" title="Real estate development" style="text-decoration: none; background: none;">real estate development</a>. His Wingfield Nevada Group/Loeb Enterprises, LLC developed <a href="https://en.wikipedia.org/wiki/Master_planned_community" class="mw-redirect" title="Master planned community" style="text-decoration: none; background: none;">master planned communities</a> including a 1,350-acre (5.5 km2) development in <a href="https://en.wikipedia.org/wiki/Sparks,Nevada" title="Sparks, Nevada" style="text-decoration: none; background: none;">Sparks, Nevada</a>, called Wingfield Springs.Loeb died on June 30, 2003, at the age of 79 in his home at the Wingfield Springs community of <a href="https://en.wikipedia.org/wiki/Sparks,Nevada" title="Sparks, Nevada" style="text-decoration: none; background: none;">Sparks, Nevada</a>.<a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-6" style="text-decoration: none; background: none;">[6]</a><a href="https://en.wikipedia.org/wiki/David_S.Loeb#cite_note-7" style="text-decoration: none; background: none;">[7]</a></div><div>
<div>https://www.propublica.org/article/anatomy-of-a-bank-failure-922</div><div>
</div><div><div class="article" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background: rgb(255, 255, 255); line-height: 1.4;">Editor’s note: This story was originally <a href="http://articles.moneycentral.msn.com/Investing/Extra/anatomy-of-a-bank-collapse.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background: transparent; text-decoration: none;">published</a> earlier today on MSN Money.As wildfires continue sweeping the financial markets, analysts and legislators agree on the need to sift through the ashes of earlier blazes to learn what went wrong and how to prevent future disasters.</div><div class="callout-ad ad" id="google-callout" data-google-query-id="CJiJsovslNECFVKJaQodMk0AbA" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background: rgb(255, 255, 255); z-index: 0;"><div class="article" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; line-height: 1.4;">The U.S. Senate Committee on Banking, Housing and Urban Affairs had scheduled a hearing last week to discuss recent bank failures and the role regulators played in them. The hearing was postponed because of new developments in the financial crisis, but senators are expected to return to the topic.One major focus: the controversy surrounding one of the largest bank failures in the nation’s history, the July collapse of Independent National Mortgage Corp., known as IndyMac.One of the key witnesses senators want to hear from is John Reich, director of the Office of Thrift Supervision, which oversees the nation’s savings and loan institutions. They are expected to ask him why OTS regulators didn’t respond more forcefully to the obvious failings of Pasadena, Calif.-based IndyMac.As he has in the past, Reich may well try to turn the blame back on a prominent member of the banking committee itself, Sen. Charles Schumer. In June, the New York Democrat sent a letter to the regulatory agencies—which quickly found its way into the news media—questioning IndyMac’s solvency.“All prospects of rescuing IndyMac disappeared after a June 26 letter to the OTS and the FDIC from Senator Charles Schumer that publicly expressed concerns about IndyMac’s viability and caused depositors to withdraw approximately $1.3 billion from their accounts,” Reich told a meeting of the American Bankers Association in Orlando in July.While Schumer’s famously ill-timed letter clearly hastened IndyMac’s end, a detailed review of filings with the Securities and Exchange Commission and the Office of Thrift Supervision for December 2007 and March 2008 suggest that prospects for keeping the S&L afloat were all but nonexistent: The lender’s demise was a matter of when, not if.The filings raise the question of whether federal regulators felt it was more important to protect the bank’s shareholders and executives than to safeguard the Federal Deposit Insurance Fund that would ultimately pay for the losses. The current cost of the IndyMac failure, according to the FDIC, is $8.9 billion—a number that would undoubtedly have been smaller had the OTS called in the FDIC six months earlier.“There are always questions when a bank fails,” said William Ruberry, an OTS spokesman, who dismissed criticisms of OTS’s actions as “Monday morning quarterbacking.”<h2 style="background: transparent; margin: 0px 0px 10px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline;">Good Money After Bad</h2><p style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; margin: 0px 0px 10px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; line-height: 1.4;">The IndyMac filings from early this year painted a truly dire picture. The S&L was heavily involved in issuing so-called Alternative-A (Alt-A) mortgages, one cut above the infamous subprime category. Defaults on the Alt-A category were high and climbing. The firm was losing money at a growing rate, and its stock price had plummeted.A conservative strategy by the OTS would have been to downgrade the S&L, and thereby limit the risk to the FDIC fund that protects insured deposits. Instead, to buy time in the hope that a new business plan would improve IndyMac’s earnings, regulators let the firm take modest write-downs of 5 percent or so in some of its troubled mortgage assets. This helped IndyMac keep its risk-based capital ratio barely above the 10 percent floor and allowed it to qualify as “well-capitalized,” thus avoiding being added to the FDIC’s list of problem institutions.As a result, IndyMac was able to keep borrowing from the Federal Home Loan Bank and pulling in insured deposits. The insured deposits rose to $16 billion as of March 31, compared with $8.8 billion on June 30, 2007. The result: much greater exposure for the FDIC when IndyMac finally collapsed.The OTS has assembled a chronology of its efforts to forestall IndyMac’s collapse, according to spokesman Ruberry. Many of these actions were informal in that they involved the agency working in consultation with the firm. While Ruberry would not share the chronology before the hearing, the agency has put an IndyMac timeline with a list of some enforcement actions on its Web site.By 2006, the company was one of the biggest purveyors of Alt-A single-family mortgages, which are generally offered to people with good credit scores but often with little or no verification of income.As early as March 2007, news stories began mentioning the possibility of massive defaults of Alt-A loans, dubbed “stated income” or “liar” loans, because people who received them often couldn’t demonstrate they could pay the interest on the loan, particularly if, after a period of time, the loan reset at a higher rate. In the first quarter of 2007, according to IndyMac’s SEC filings, just 21 percent of the company’s total loan production involved “full-doc” (fully documented) mortgages.A June 2008 report by the Center for Responsible Lending, a foundation-funded nonprofit that reports on abusive financial practices, described an IndyMac corporate culture that emphasized loan volume and short-term growth over careful lending standards. (Among the center’s funders is the family foundation of Herbert and Marion Sandler, the principal funders of ProPublica.) It’s a characterization the company has disputed.“It didn’t have to happen this way,” the report concluded. “Federal authorities—including the Office of Thrift Supervision—should have kept a closer eye on IndyMac’s business model and practices.”The OTS’s Ruberry said the agency disagrees with the center’s conclusions. “The Center for Responsive Lending and any other external party doesn’t have all the info on what happened,” he said. “They can’t substitute for the insight of examiners who are in the bank.”Ruberry also noted that the number of consumer complaints about IndyMac was relatively low.In the fourth quarter of 2007, under OTS supervision, IndyMac moved $10.9 billion in troubled loans intended for sale to the secondary market to the category of “held for investment”—a polite term for loans that would be very difficult to sell without a huge discount. By that time, those loans were starting to reset and the housing market to decline, with disastrous results that would continue into 2008.<h2 style="background: transparent; margin: 0px 0px 10px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline;">Withholding Judgment</h2>In that portfolio of loans held for investment, 9.47 percent were nonperforming in March 2008, compared with 2.12 percent for the same period in 2007, according to the company’s March 10 quarterly filing. To make matters worse, the company’s loans were heavily concentrated in California and to a lesser extent Florida, both hit particularly hard by the collapsing housing market.Yet in March 2008, IndyMac still wasn’t on the FDIC’s list of problem banks.When IndyMac transferred the $10.9 billion to the “held for investment” category, it had to revalue the loans to reflect “market” value. The bank determined the value had dropped by only about $600 million, a little more than 5 percent. It also freely admitted in its financial filings that because of “the extreme disruption in the secondary market” it would be hard to sell the loans. Any significant further devaluation would have put IndyMac below the required risk-based capital ratios necessary to accept brokered deposits without an FDIC waiver—deposits on which the bank had become heavily reliant. As IndyMac’s primary regulator, OTS still had the power to downgrade the S&L and bring in the FDIC. Instead, the OTS—optimistically, in retrospect—approved another course for IndyMac.In the fourth quarter of 2007, IndyMac changed its business model “in response to market conditions and OTS concerns,” according to an agency fact sheet. Rather than continue to push the riskier and higher yielding Alt-A loans, it focused on originating mortgages it could sell to so-called GSEs, or government-sponsored enterprises, like Fannie Mae and Freddie Mac. The OTS hoped that would buy IndyMac enough time to “obtain a significant capital infusion or to find a buyer,” according to the agency’s narrative. Before that could happen, Schumer’s letter appeared, and the bank didn’t have enough liquidity to withstand the deposit run that followed.The senator and his staff didn’t respond to multiple calls from ProPublica asking him to explain how his letter to the OTS became public, or what he and his staff were thinking if they were responsible for leaking it. Could someone as financially savvy as Schumer fail to understand that a public airing of his views was almost certain, in the current environment, to drive IndyMac to if not over the brink?Whatever role Schumer’s actions may have played, OTS’s actions reflected a brash if not heroic assumption that the economy would improve and IndyMac’s fortunes would brighten. “The predictions of economists were that the market was going to turn around,” Ruberry said. “We obviously know in hindsight, but we couldn’t see into the future how sustained the downturn would be.”Given the bank’s already precarious position in late 2007, those assumptions will likely be strongly challenged when senators turn their attention from crisis management to what went wrong.</div><div></div><div>The Office of Thrift Supervision (OTS) was a <a href="https://en.wikipedia.org/wiki/List_of_United_States_federal_agencies" class="mw-redirect" title="List of United States federal agencies" style="text-decoration: none; background: none;">United States federal agency</a> under the <a href="https://en.wikipedia.org/wiki/United_States_Department_of_the_Treasury" title="United States Department of the Treasury" style="text-decoration: none; background: none;">Department of the Treasury</a> that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of another federal agency (that was faulted for its role in the <a href="https://en.wikipedia.org/wiki/Savings_and_loan_crisis" title="Savings and loan crisis" style="text-decoration: none; background: none;">savings and loan crisis</a>). Like other U.S. federal bank regulators, it was paid by the banks it regulated. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to <a href="https://en.wikipedia.org/wiki/Regulatory_capture" title="Regulatory capture" style="text-decoration: none; background: none;">market itself to companies as a lax regulator</a> in order to get revenue.The OTS also expanded its oversight to companies that were not banks. Some of the companies that failed under OTS supervision during the <a href="https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010" class="mw-redirect" title="Financial crisis of 2007–2010" style="text-decoration: none; background: none;">financial crisis of 2007–2010</a> include <a href="https://en.wikipedia.org/wiki/American_International_Group" title="American International Group" style="text-decoration: none; background: none;">American International Group</a> (AIG), <a href="https://en.wikipedia.org/wiki/Washington_Mutual" title="Washington Mutual" style="text-decoration: none; background: none;">Washington Mutual</a>, and <a href="https://en.wikipedia.org/wiki/IndyMac" title="IndyMac" style="text-decoration: none; background: none;">IndyMac</a>.The OTS was implicated in a backdating scandal regarding the balance sheet of IndyMac. Reform proposals from <a href="https://en.wikipedia.org/wiki/Henry_Paulson" title="Henry Paulson" style="text-decoration: none; background: none;">Henry Paulson</a>, President <a href="https://en.wikipedia.org/wiki/Barack_Obama" title="Barack Obama" style="text-decoration: none; background: none;">Barack Obama</a>, and the <a href="https://en.wikipedia.org/wiki/United_States_Congress" title="United States Congress" style="text-decoration: none; background: none;">U.S. Congress</a> proposed to merge the OTS with the <a href="https://en.wikipedia.org/wiki/Office_of_the_Comptroller_of_the_Currency" title="Office of the Comptroller of the Currency" style="text-decoration: none; background: none;">Office of the Comptroller of the Currency</a>. Section 312 of the <a href="https://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Act" class="mw-redirect" title="Dodd-Frank Wall Street Reform and Consumer Protection Act" style="text-decoration: none; background: none;">Dodd-Frank Wall Street Reform and Consumer Protection Act</a> mandated merger of OTS with the <a href="https://en.wikipedia.org/wiki/Office_of_the_Comptroller_of_the_Currency" title="Office of the Comptroller of the Currency" style="text-decoration: none; background: none;">Office of the Comptroller of the Currency</a> (OCC), the <a href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation" title="Federal Deposit Insurance Corporation" style="text-decoration: none; background: none;">Federal Deposit Insurance Corporation</a> (FDIC), the <a href="https://en.wikipedia.org/wiki/Federal_Reserve_Board_of_Governors" title="Federal Reserve Board of Governors" style="text-decoration: none; background: none;">Federal Reserve Board of Governors</a>, and the <a href="https://en.wikipedia.org/wiki/United_States_Consumer_Financial_Protection_Bureau" class="mw-redirect" title="United States Consumer Financial Protection Bureau" style="text-decoration: none; background: none;">Consumer Financial Protection Bureau</a> (CFPB) as of 21 July 2011. The OTS ceased to exist on 19 October 2011.<div id="toc" class="toc" style="border: 1px solid rgb(162, 169, 177); background-color: rgb(248, 249, 250); padding: 7px; display: table; zoom: 1;"><div id="toctitle" style="direction: ltr; text-align: center;"><h2 style="background: none; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border: none; display: inline; line-height: 1.3;">Contents</h2>  [<a role="button" tabindex="0" id="togglelink" style="background: none; cursor: pointer;">hide</a>] </div><ul style="list-style-type: none; margin: 0.3em 0px; padding: 0px; list-style-image: none;"><li class="toclevel-1 tocsection-1" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Funding" style="text-decoration: none; background: none;">1Funding</a></li><li class="toclevel-1 tocsection-2" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#History" style="text-decoration: none; background: none;">2History</a></li><li class="toclevel-1 tocsection-3" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Reform" style="text-decoration: none; background: none;">3Reform</a></li><li class="toclevel-1 tocsection-4" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Responsibilities" style="text-decoration: none; background: none;">4Responsibilities</a></li><li class="toclevel-1 tocsection-5" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Institutions_regulated" style="text-decoration: none; background: none;">5Institutions regulated</a><ul style="list-style-type: none; margin: 0px 0px 0px 2em; padding: 0px; list-style-image: none;"><li class="toclevel-2 tocsection-6" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Indymac" style="text-decoration: none; background: none;">5.1Indymac</a></li><li class="toclevel-2 tocsection-7" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#AIG" style="text-decoration: none; background: none;">5.2AIG</a></li></ul></li><li class="toclevel-1 tocsection-8" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Locations" style="text-decoration: none; background: none;">6Locations</a></li><li class="toclevel-1 tocsection-9" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#See_also" style="text-decoration: none; background: none;">7See also</a></li><li class="toclevel-1 tocsection-10" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#Notes" style="text-decoration: none; background: none;">8Notes</a></li><li class="toclevel-1 tocsection-11" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#References" style="text-decoration: none; background: none;">9References</a></li><li class="toclevel-1 tocsection-12" style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#External_links" style="text-decoration: none; background: none;">10External links</a></li></ul></div><h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">Funding[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=1" title="Edit section: Funding" style="text-decoration: none; background: none;">edit</a>]</h2>OTS did not receive a government budget; instead, they were funded by the banks they regulate, like other U.S. federal bank regulators.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a> Other regulatory agencies like the OTS include the <a href="https://en.wikipedia.org/wiki/Office_of_the_Comptroller_of_the_Currency" title="Office of the Comptroller of the Currency" style="text-decoration: none; background: none;">Office of the Comptroller of the Currency</a>, the <a href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation" title="Federal Deposit Insurance Corporation" style="text-decoration: none; background: none;">FDIC</a>, the <a href="https://en.wikipedia.org/wiki/Federal_Reserve_System" title="Federal Reserve System" style="text-decoration: none; background: none;">Federal Reserve System</a>, and the <a href="https://en.wikipedia.org/wiki/National_Credit_Union_Administration" title="National Credit Union Administration" style="text-decoration: none; background: none;">National Credit Union Administration</a>.If banks regulated by OTS fail, revenues for the agency decline; conversely, if the OTS regulates more banks, revenues increase.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a><h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">History[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=2" title="Edit section: History" style="text-decoration: none; background: none;">edit</a>]</h2>The OTS was established in 1989 in response to the <a href="https://en.wikipedia.org/wiki/Savings_and_loan_crisis" title="Savings and loan crisis" style="text-decoration: none; background: none;">savings and loan crisis</a>. On television, President <a href="https://en.wikipedia.org/wiki/George_H.W.Bush" title="George H. W. Bush" style="text-decoration: none; background: none;">George H. W. Bush</a> said,<table class="cquote" role="presentation" style="background-color: transparent; margin: auto; border-collapse: collapse; border: none; width: auto;"><tbody><tr><td style="width: 20px; vertical-align: top; border: none;" times="Times" new="New" roman="Roman" serif="serif" font-weight="font-weight" bold="bold" line-height="line-height" em="em" padding="padding" px="px">“</td><td style="vertical-align: top; border: none; padding: 4px 10px;">never again will America allow any insured institution operate without enough money</td><td style="width: 20px; vertical-align: bottom; border: none;" times="Times" new="New" roman="Roman" serif="serif" font-weight="font-weight" bold="bold" line-height="line-height" em="em" text-align="text-align" right="right" padding="padding" px="px">”</td></tr></tbody></table>and "trashed" the predecessor <a href="https://en.wikipedia.org/wiki/Federal_Home_Loan_Bank_Board" title="Federal Home Loan Bank Board" style="text-decoration: none; background: none;">Federal Home Loan Bank Board</a>; soon thereafter, the sign was changed to the "Office of Thrift Supervision".<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-2" style="text-decoration: none; background: none;">[2]</a> Savings and Loan legislation—the <a href="https://en.wikipedia.org/wiki/Financial_Institutions_Reform,Recovery_and_Enforcement_Act_of_1989" class="mw-redirect" title="Financial Institutions Reform, Recovery and Enforcement Act of 1989" style="text-decoration: none; background: none;">Financial Institutions Reform, Recovery and Enforcement Act of 1989</a>—"abolished",<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-3" style="text-decoration: none; background: none;">[3]</a> or renamed, the independent Federal Home Loan Bank Board to the Office of Thrift Supervision and placed it under <a href="https://en.wikipedia.org/wiki/United_States_Department_of_the_Treasury" title="United States Department of the Treasury" style="text-decoration: none; background: none;">Department of the Treasury</a> supervision.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-4" style="text-decoration: none; background: none;">[4]</a> On 22 March 1990, in a setback to the George H. W. Bush Administration, Federal District Judge <a href="https://en.wikipedia.org/wiki/Royce_C.Lamberth" title="Royce C. Lamberth" style="text-decoration: none; background: none;">Royce C. Lamberth</a> ruled that OTS appointments of the former director and acting director, <a href="https://en.wikipedia.org/w/index.php?title=Danny_Wall&action=edit&redlink=1" class="new" title="Danny Wall (page does not exist)" style="text-decoration: none; background: none;">M. Danny Wall</a> and <a href="https://en.wikipedia.org/wiki/Salvatore_R.Martoche" title="Salvatore R. Martoche" style="text-decoration: none; background: none;">Salvatore R. Martoche</a>, had been unconstitutional because they were not nominated by the President and confirmed by the <a href="https://en.wikipedia.org/wiki/United_States_Senate" title="United States Senate" style="text-decoration: none; background: none;">Senate</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-5" style="text-decoration: none; background: none;">[5]</a>In 1992, under Director T. Timothy Ryan, the OTS aggressively shut down troubled Savings and Loan (S&L) outfits, and was criticized by the industry and industry lawyers for not allowing some S&Ls that might survive to have a chance.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-6" style="text-decoration: none; background: none;">[6]</a> Ryan contrasted the OTS cleanup of the S&L industry to the former situation.<table class="cquote" role="presentation" style="background-color: transparent; margin: auto; border-collapse: collapse; border: none; width: auto;"><tbody><tr><td style="width: 20px; vertical-align: top; border: none;" times="Times" new="New" roman="Roman" serif="serif" font-weight="font-weight" bold="bold" line-height="line-height" em="em" padding="padding" px="px">“</td><td style="vertical-align: top; border: none; padding: 4px 10px;">We're the regulator of the industry. We aren't the trade association and we're not its promoter. That's how they got into trouble the last time. They had a regulator who was a promoter.</td><td style="width: 20px; vertical-align: bottom; border: none;" times="Times" new="New" roman="Roman" serif="serif" font-weight="font-weight" bold="bold" line-height="line-height" em="em" text-align="text-align" right="right" padding="padding" px="px">”</td></tr></tbody></table>S&Ls were "dropping like flies" and this presented problems for OTS staff—declining revenues led to a declining staff.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a> The OTS responded by marketing itself at industry meetings.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a> At one such meeting, federal regulators were "announcing a campaign to ease regulation" and they were in a photo-op over a stack of the federal regulations—holding garden shears signaling their intent to cut through them.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a> OTS Director James Gilleran brought a <a href="https://en.wikipedia.org/wiki/Chainsaw" title="Chainsaw" style="text-decoration: none; background: none;">chainsaw</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-The_Watchmen.p.11-1" style="text-decoration: none; background: none;">[1]</a> "Companies got the message."<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-7" style="text-decoration: none; background: none;">[7]</a> In 1998, OTS approved 43 charters, with more than a third going to non-banks.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-8" style="text-decoration: none; background: none;">[8]</a> In 2004 Gilleran said "our goal is to allow thrifts to operate with a wide breadth of freedom from regulatory intrusion".<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PlayedAdvocate-9" style="text-decoration: none; background: none;">[9]</a> The OTS "adopted an aggressively deregulatory stance toward the mortgage lenders it regulated... [and] allowed the reserves the banks held as a buffer against losses to dwindle to a historic low."<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PlayedAdvocate-9" style="text-decoration: none; background: none;">[9]</a>In March 2007, a <a href="https://en.wikipedia.org/wiki/Government_Accountability_Office" title="Government Accountability Office" style="text-decoration: none; background: none;">Government Accountability Office</a> report noted that "In contrast [to the <a href="https://en.wikipedia.org/wiki/Federal_Reserve" class="mw-redirect" title="Federal Reserve" style="text-decoration: none; background: none;">Federal Reserve</a>], a substantial minority of the firms OTS oversees—especially the large, complex ones—have primary businesses other than those traditionally engaged in by thrifts, such as insurance, securities, or commercial activities."<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-10" style="text-decoration: none; background: none;">[10]</a>Section 312 of the <a href="https://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Act" class="mw-redirect" title="Dodd-Frank Wall Street Reform and Consumer Protection Act" style="text-decoration: none; background: none;">Dodd-Frank Wall Street Reform and Consumer Protection Act</a> mandated merger of OTS with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board, and the Consumer Financial Protection Bureau (CFPB) as of 21 July 2011. The OTS ceased to exist on 19 October 2011.The end of the OTS prompted at least one thrift, <a href="https://en.wikipedia.org/wiki/Thrivent_Financial_for_Lutherans" class="mw-redirect" title="Thrivent Financial for Lutherans" style="text-decoration: none; background: none;">Thrivent Financial for Lutherans</a>, to convert to a credit union rather than meet the "strict" insurance regulations set forth in the Dodd-Frank Act.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-11" style="text-decoration: none; background: none;">[11]</a><h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">Reform[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=3" title="Edit section: Reform" style="text-decoration: none; background: none;">edit</a>]</h2><ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" color="color" rgb="rgb" font-size="font-size" px="px" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;">In 2008, then Treasury Secretary <a href="https://en.wikipedia.org/wiki/Henry_Paulson" title="Henry Paulson" style="text-decoration: none; background: none;">Henry Paulson</a> proposed merging the OTS with the <a href="https://en.wikipedia.org/wiki/Office_of_the_Comptroller_of_the_Currency" title="Office of the Comptroller of the Currency" style="text-decoration: none; background: none;">Office of the Comptroller of the Currency</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-12" style="text-decoration: none; background: none;">[12]</a></li><li style="margin-bottom: 0.1em;">On 17 June 2009 President <a href="https://en.wikipedia.org/wiki/Barack_Obama" title="Barack Obama" style="text-decoration: none; background: none;">Barack Obama</a> announced that he would ask the <a href="https://en.wikipedia.org/wiki/United_States_Congress" title="United States Congress" style="text-decoration: none; background: none;">United States Congress</a> to merge OTS into the Office of the Comptroller of the Currency, which regulates federally chartered banks.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-13" style="text-decoration: none; background: none;">[13]</a></li><li style="margin-bottom: 0.1em;">In 2009, both the House and Senate proposals included merging OTS with the Office of the Comptroller of the Currency.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-14" style="text-decoration: none; background: none;">[14]</a></li><li style="margin-bottom: 0.1em;">In 2010, the US Senate passed legislation that would strengthen oversight of large financial institutions, but would continue to allow smaller banks to shop for their own regulator, a loophole sought by the <a href="https://en.wikipedia.org/wiki/Independent_Community_Bankers_of_America" title="Independent Community Bankers of America" style="text-decoration: none; background: none;">Independent Community Bankers of America</a> and the <a href="https://en.wikipedia.org/wiki/American_Bankers_Association" title="American Bankers Association" style="text-decoration: none; background: none;">American Bankers Association</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-15" style="text-decoration: none; background: none;">[15]</a></li></ul><h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">Responsibilities[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=4" title="Edit section: Responsibilities" style="text-decoration: none; background: none;">edit</a>]</h2>OTS supervised <a href="https://en.wikipedia.org/wiki/Holding_companies" class="mw-redirect" title="Holding companies" style="text-decoration: none; background: none;">holding companies</a> as well as <a href="https://en.wikipedia.org/wiki/Thrift_institutions" class="mw-redirect" title="Thrift institutions" style="text-decoration: none; background: none;">thrift institutions</a>. This resulted in OTS providing consolidated supervision for such well-known firms as <a href="https://en.wikipedia.org/wiki/General_Electric" title="General Electric" style="text-decoration: none; background: none;">General Electric</a> (GE), <a href="https://en.wikipedia.org/wiki/American_International_Group" title="American International Group" style="text-decoration: none; background: none;">AIG, Inc.</a>, <a href="https://en.wikipedia.org/wiki/Ameriprise_Financial" title="Ameriprise Financial" style="text-decoration: none; background: none;">Ameriprise Financial</a>, <a href="https://en.wikipedia.org/wiki/American_Express" title="American Express" style="text-decoration: none; background: none;">American Express</a>, <a href="https://en.wikipedia.org/wiki/Morgan_Stanley" title="Morgan Stanley" style="text-decoration: none; background: none;">Morgan Stanley</a>, and <a href="https://en.wikipedia.org/wiki/Merrill_Lynch" title="Merrill Lynch" style="text-decoration: none; background: none;">Merrill Lynch</a>. OTS's consolidated supervision program for GE, AIG Inc., and Ameriprise was recognized as "equivalent" by the <a href="https://en.wikipedia.org/wiki/European_Union" title="European Union" style="text-decoration: none; background: none;">European Union</a>—allowing these firms to operate their financial businesses in the EU without forming an EU holding company and submitting to supervision in the EU.The OTS was the primary regulator of <a href="https://en.wikipedia.org/wiki/Federal_Savings_Associations" class="mw-redirect" title="Federal Savings Associations" style="text-decoration: none; background: none;">Federal Savings Associations</a> (sometimes referred to as Federal thrifts). Federal savings associations include both Federal Savings Banks and Federal <a href="https://en.wikipedia.org/wiki/Savings_and_Loan" class="mw-redirect" title="Savings and Loan" style="text-decoration: none; background: none;">Savings and Loans</a>. The OTS was also responsible for supervising Savings and Loan Holding Companies (SLHCs) and some state-chartered institutions.<h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">Institutions regulated[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=5" title="Edit section: Institutions regulated" style="text-decoration: none; background: none;">edit</a>]</h2>The following are some of the larger institutions that were regulated by the OTS:<ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" color="color" rgb="rgb" font-size="font-size" px="px" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/American_Express" title="American Express" style="text-decoration: none; background: none;">American Express</a> Bank, FSB – Salt Lake City, UT</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/American_International_Group" title="American International Group" style="text-decoration: none; background: none;">American International Group</a> – New York City, NY (Note 4)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Astoria_Federal_Savings_and_Loan_Association" class="mw-redirect" title="Astoria Federal Savings and Loan Association" style="text-decoration: none; background: none;">Astoria Federal Savings and Loan Association</a> – Long Island City, NY</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/BankUnited" title="BankUnited" style="text-decoration: none; background: none;">BankUnited</a>, FSB – Coral Gables, FL now (BankUnited)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Capital_One" title="Capital One" style="text-decoration: none; background: none;">Capital One</a>, F.S.B. – McLean, VA (Note 1)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Chevy_Chase_Bank" title="Chevy Chase Bank" style="text-decoration: none; background: none;">Chevy Chase Bank</a>, Federal Savings Bank – McLean, VA</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Citicorp" class="mw-redirect" title="Citicorp" style="text-decoration: none; background: none;">Citicorp</a> Trust Bank, FSB – Wilmington, DE</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/w/index.php?title=Citizens_Bank_of_Pennsylvania&action=edit&redlink=1" class="new" title="Citizens Bank of Pennsylvania (page does not exist)" style="text-decoration: none; background: none;">Citizens Bank of Pennsylvania</a> – Philadelphia, PA</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Countrywide_Bank" class="mw-redirect" title="Countrywide Bank" style="text-decoration: none; background: none;">Countrywide Bank</a>, FSB - Alexandria, VA (Note 2 - now a part of <a href="https://en.wikipedia.org/wiki/Bank_of_America" title="Bank of America" style="text-decoration: none; background: none;">Bank of America</a>)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/w/index.php?title=Downey_Savings&action=edit&redlink=1" class="new" title="Downey Savings (page does not exist)" style="text-decoration: none; background: none;">Downey Savings</a>, F.A. – Newport Beach, CA (now a part of <a href="https://en.wikipedia.org/wiki/US_Bank" class="mw-redirect" title="US Bank" style="text-decoration: none; background: none;">US Bank</a>)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/E-Trade" title="E-Trade" style="text-decoration: none; background: none;">E-Trade</a> Bank – Arlington, VA</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Flagstar_Bank" title="Flagstar Bank" style="text-decoration: none; background: none;">Flagstar Bank</a>, FSB – Troy, MI</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Guaranty_Bank(Texas)" title="Guaranty Bank (Texas)" style="text-decoration: none; background: none;">Guaranty Bank</a> – Austin, TX</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/w/index.php?title=H%26R_Block_Bank&action=edit&redlink=1" class="new" title="H&R Block Bank (page does not exist)" style="text-decoration: none; background: none;">H&R Block Bank</a> - Kansas City, MO</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Hudson_City_Savings_Bank" class="mw-redirect" title="Hudson City Savings Bank" style="text-decoration: none; background: none;">Hudson City Savings Bank</a>, FSB – Paramus, NJ</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/IndyMac_Bank" class="mw-redirect" title="IndyMac Bank" style="text-decoration: none; background: none;">IndyMac Bank</a>, FSB – Pasadena, CA (Note 3)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/ING_Group" title="ING Group" style="text-decoration: none; background: none;">ING Bank</a>, FSB – Wilmington, DE</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/New_York_Community_Bank" title="New York Community Bank" style="text-decoration: none; background: none;">New York Community Bank</a> – Flushing, NY</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Ohio_Savings_Bank" class="mw-redirect" title="Ohio Savings Bank" style="text-decoration: none; background: none;">Ohio Savings Bank</a> / <a href="https://en.wikipedia.org/w/index.php?title=Amtrust&action=edit&redlink=1" class="new" title="Amtrust (page does not exist)" style="text-decoration: none; background: none;">Amtrust</a> – Cleveland, OH</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/w/index.php?title=PFF_Bank%26_Trust&action=edit&redlink=1" class="new" title="PFF Bank & Trust (page does not exist)" style="text-decoration: none; background: none;">PFF Bank & Trust</a> - Rancho Cucamonga, CA (Note 2 - now part of US Bank)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Sovereign_Bank" class="mw-redirect" title="Sovereign Bank" style="text-decoration: none; background: none;">Sovereign Bank</a> – Wyomissing, PA</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/USAA" title="USAA" style="text-decoration: none; background: none;">USAA</a> Federal Savings Bank – San Antonio, TX</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Washington_Mutual" title="Washington Mutual" style="text-decoration: none; background: none;">Washington Mutual</a> FSB - Seattle, WA (Note 2 - now a part of <a href="https://en.wikipedia.org/wiki/JPMorgan_Chase" title="JPMorgan Chase" style="text-decoration: none; background: none;">JPMorgan Chase</a>)</li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/WSFS_Bank" title="WSFS Bank" style="text-decoration: none; background: none;">Wilmington Savings Fund Society, FSB</a> - Wilmington, DE</li></ul><h3 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">Indymac[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=6" title="Edit section: Indymac" style="text-decoration: none; background: none;">edit</a>]</h3>In March 2008, OTS Director <a href="https://en.wikipedia.org/wiki/John_M.Reich" title="John M. Reich" style="text-decoration: none; background: none;">John M. Reich</a> stated that the Savings and Loan industry remained vibrant due to the effectiveness of regulators.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-16" style="text-decoration: none; background: none;">[16]</a> Reich blamed Indymac's 11 July 2008 failure on $1.3bn of withdrawals in the fortnight following concerns raised from Senator <a href="https://en.wikipedia.org/wiki/Chuck_Schumer" title="Chuck Schumer" style="text-decoration: none; background: none;">Chuck Schumer</a> over the bank's solvency.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-17" style="text-decoration: none; background: none;">[17]</a><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-18" style="text-decoration: none; background: none;">[18]</a>Schumer faulted the OTS.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-19" style="text-decoration: none; background: none;">[19]</a> The failure of <a href="https://en.wikipedia.org/wiki/IndyMac_Bank" class="mw-redirect" title="IndyMac Bank" style="text-decoration: none; background: none;">IndyMac Bank</a> was the fourth largest <a href="https://en.wikipedia.org/wiki/Bank_run" title="Bank run" style="text-decoration: none; background: none;">bank failure</a> in <a href="https://en.wikipedia.org/wiki/United_States" title="United States" style="text-decoration: none; background: none;">United States</a> history.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-20" style="text-decoration: none; background: none;">[20]</a> Prior to IndyMac's failure on 11 July 2008, the bank had come to rely heavily on higher cost, less stable, brokered deposits, as well as secured borrowings, to fund its operations. The bank had focused on stated income and other aggressively underwritten loans in areas with rapidly escalating home prices, particularly in California and Florida.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-21" style="text-decoration: none; background: none;">[21]</a>On 21 July 2008, Mr. Reich described "interference with the regulatory process by reporting and disseminating speculation about the condition of financial institutions, thereby undermining public confidence in those institutions and causing serious harm" as a contributor to the failure of IndyMac as well as <a href="https://en.wikipedia.org/wiki/Fannie_Mae" title="Fannie Mae" style="text-decoration: none; background: none;">Fannie Mae</a>, <a href="https://en.wikipedia.org/wiki/Freddie_Mac" title="Freddie Mac" style="text-decoration: none; background: none;">Freddie Mac</a> and <a href="https://en.wikipedia.org/wiki/Lehman_Brothers" title="Lehman Brothers" style="text-decoration: none; background: none;">Lehman Brothers</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-22" style="text-decoration: none; background: none;">[22]</a>On 22 December 2008, Mr. Reich removed his agency's western director, Darrel W. Dochow for allowing IndyMac to backdate a capital infusion of $18 million from its parent company so that the bank would appear "well capitalized" in its 10-Q for the period ending 31 March 2008. According to a source with knowledge of the incident, at another point Mr. Dochow limited the scope of a review by OTS regulators of IndyMac's portfolio of loans and other assets, overruling the advice of others in the agency.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-23" style="text-decoration: none; background: none;">[23]</a> Mr. Dochow played a central role in the savings-and-loan scandal of the 1980s, overriding a recommendation by federal bank examiners in San Francisco to seize Lincoln Savings, the giant savings and loan owned by Charles Keating. Mr. Reich called the backdating irregularity “a relatively small factor” in the collapse of IndyMac.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-24" style="text-decoration: none; background: none;">[24]</a>On 12 February 2009, Mr. Reich resigned, announcing he would step down 27 February.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-washington.bizjournals.com-25" style="text-decoration: none; background: none;">[25]</a>On 26 February 2009, the Treasury Department's inspector general released a report citing laxity at the OTS under Reich for adding significantly to the $10.7 billion in FDIC losses from the IndyMac failure, as well as the estimated $270 million in losses suffered by uninsured depositors. The report concluded that, under the law, OTS should have taken Prompt Corrective Action against IndyMac in May 2008.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-26" style="text-decoration: none; background: none;">[26]</a> Commenting on the report, Inspector General Eric Thorson dismissed Reich's claim that Senator Schumer's letters caused the failure. Marla Freedman, the assistant inspector general for audit, detailed a pattern of excess risk-taking and abuse of the lending process at IndyMac and the OTS's consistent and concurrent failure to act. Mr. Reich said in a letter to the inspector general that he agreed with the agency's filings.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-27" style="text-decoration: none; background: none;">[27]</a>On 27 February 2009, Mr. Reich stepped down amidst the continuing audit of backdating at IndyMac and four other institutions.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-28" style="text-decoration: none; background: none;">[28]</a> Scott Polakoff, OTS senior deputy director and chief operating officer, hired under Mr. Reich, became acting director on his departure.On 26 March 2009, Polakoff was removed and placed on leave by <a href="https://en.wikipedia.org/wiki/United_States_Secretary_of_the_Treasury" title="United States Secretary of the Treasury" style="text-decoration: none; background: none;">United States Secretary of the Treasury</a> <a href="https://en.wikipedia.org/wiki/Timothy_Geithner" title="Timothy Geithner" style="text-decoration: none; background: none;">Timothy Geithner</a>, amidst an announced further review and investigation of the backdating scandal by the U.S. Treasury's Inspector General.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-29" style="text-decoration: none; background: none;">[29]</a><h3 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; margin: 0.3em 0px 0px; overflow: hidden; padding-top: 0.5em; padding-bottom: 0px; border-bottom: none; line-height: 1.6;">AIG[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=7" title="Edit section: AIG" style="text-decoration: none; background: none;">edit</a>]</h3>The OTS was pressed by the <a href="https://en.wikipedia.org/wiki/Senate_Banking_Committee" class="mw-redirect" title="Senate Banking Committee" style="text-decoration: none; background: none;">Senate Banking Committee</a> to admit partial blame for the failure of <a href="https://en.wikipedia.org/wiki/American_International_Group" title="American International Group" style="text-decoration: none; background: none;">American International Group</a> (AIG).<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-SenatorsAsk-30" style="text-decoration: none; background: none;">[30]</a> In a congressional hearing, after <a href="https://en.wikipedia.org/wiki/Donald_Kohn" title="Donald Kohn" style="text-decoration: none; background: none;">Donald Kohn</a> described how there was no regulator for <a href="https://en.wikipedia.org/wiki/AIG_Financial_Products" title="AIG Financial Products" style="text-decoration: none; background: none;">AIG Financial Products</a> or the company overall, Scott Polakoff interrupted.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-P8-31" style="text-decoration: none; background: none;">[31]</a><a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-32" style="text-decoration: none; background: none;">[32]</a> Polakoff stated that it was time for the OTS to take some responsibility because they had been "deemed an acceptable regulator for both US domestic and international operations".<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-33" style="text-decoration: none; background: none;">[33]</a>Due to OTS regulation of AIG, the <a href="https://en.wikipedia.org/wiki/Mayfair" title="Mayfair" style="text-decoration: none; background: none;">Mayfair</a>-based (London, UK) AIG Financial Products division was not subject to <a href="https://en.wikipedia.org/wiki/Financial_Services_Authority" title="Financial Services Authority" style="text-decoration: none; background: none;">Financial Services Authority</a> regulation.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-34" style="text-decoration: none; background: none;">[34]</a> OTS regulation allowed France's <a href="https://en.wikipedia.org/w/index.php?title=Commission_Bancaire(France)&action=edit&redlink=1" class="new" title="Commission Bancaire (France) (page does not exist)" style="text-decoration: none; background: none;">Commission Bancaire</a> to grant approval for a Paris-based banking subsidiary, Banque AIG. The Mayfair-based AIG Financial Products division then opened under a system which allowed branch openings in member countries after one EU regulator's approval.That OTS was the primary regulator of AIG has been described as "nonsense"<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-35" style="text-decoration: none; background: none;">[35]</a> and compared to "the super-heavyweight of the world going up against the 65 lb, 13-year-old, class weakling".<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-36" style="text-decoration: none; background: none;">[36]</a> AIG operates in 130 countries.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-37" style="text-decoration: none; background: none;">[37]</a> The OTS had a small division that monitored <a href="https://en.wikipedia.org/wiki/Derivative(finance)" title="Derivative (finance)" style="text-decoration: none; background: none;">derivatives</a> including the <a href="https://en.wikipedia.org/wiki/Credit_default_swap" title="Credit default swap" style="text-decoration: none; background: none;">credit default swaps</a> at AIG.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PP-38" style="text-decoration: none; background: none;">[38]</a>After a dispute with <a href="https://en.wikipedia.org/wiki/Goldman_Sachs" title="Goldman Sachs" style="text-decoration: none; background: none;">Goldman Sachs</a> in 2007 over the value of the credit default swaps,<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-email-39" style="text-decoration: none; background: none;">[39]</a> the OTS did not initiate formal enforcement action, but "periodically raised concerns with AIG managers".<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PP-38" style="text-decoration: none; background: none;">[38]</a> Other sources of concern were the three <a href="https://en.wikipedia.org/wiki/Credit_rating_agencies" class="mw-redirect" title="Credit rating agencies" style="text-decoration: none; background: none;">credit rating agencies</a> and AIG's auditor <a href="https://en.wikipedia.org/wiki/PricewaterhouseCoopers" title="PricewaterhouseCoopers" style="text-decoration: none; background: none;">PricewaterhouseCoopers</a>.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-email-39" style="text-decoration: none; background: none;">[39]</a> In March 2008, after AIG disclosed valuation problems, the OTS sent a letter to AIG requesting a "corrective action plan" in 30 days.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PP-38" style="text-decoration: none; background: none;">[38]</a> The division overseeing AIG Financial Products was "quietly disbanded" and AIG missed their deadline.<a href="https://en.wikipedia.org/wiki/Office_of_Thrift_Supervision#cite_note-PP-38" style="text-decoration: none; background: none;">[38]</a><h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">Locations[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=8" title="Edit section: Locations" style="text-decoration: none; background: none;">edit</a>]</h2>In addition to being headquartered in Washington D.C., OTS had regional offices in <a href="https://en.wikipedia.org/wiki/Atlanta" title="Atlanta" style="text-decoration: none; background: none;">Atlanta</a>, <a href="https://en.wikipedia.org/wiki/Dallas" title="Dallas" style="text-decoration: none; background: none;">Dallas</a>, <a href="https://en.wikipedia.org/wiki/Jersey_City" class="mw-redirect" title="Jersey City" style="text-decoration: none; background: none;">Jersey City</a>, <a href="https://en.wikipedia.org/wiki/San_Francisco" title="San Francisco" style="text-decoration: none; background: none;">San Francisco</a>, and <a href="https://en.wikipedia.org/wiki/Chicago" title="Chicago" style="text-decoration: none; background: none;">Chicago</a>.<h2 style="background-image: none; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-weight: normal; margin: 1em 0px 0.25em; overflow: hidden; padding: 0px; border-bottom: 1px solid rgb(162, 169, 177); font-family: " linux="Linux" libertine="Libertine" georgia="Georgia" times="Times" serif="serif" line-height="line-height">See also[<a href="https://en.wikipedia.org/w/index.php?title=Office_of_Thrift_Supervision&action=edit&section=9" title="Edit section: See also" style="text-decoration: none; background: none;">edit</a>]</h2><ul style="margin: 0.3em 0px 0px 1.6em; padding: 0px; list-style-image: url(" data:image="data:image" svg="svg" xml="xml" c="C" fxml="Fxml" version="version" d="D" encoding="encoding" utf-8="UTF-8" f="F" e="E" a="A" csvg="Csvg" http="http" fwww.w3.org="Fwww.w3.org" f2000="F2000" fsvg="Fsvg" width="width" height="height" ccircle="Ccircle" cx="cx" cy="cy" r="r" fill="fill" color="color" rgb="rgb" font-size="font-size" px="px" xmlns="xmlns" xmlns:data="data"><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Title_12_of_the_Code_of_Federal_Regulations" title="Title 12 of the Code of Federal Regulations" style="text-decoration: none; background: none;">Title 12 of the Code of Federal Regulations</a></li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/2009_United_States_bank_failures" class="mw-redirect" title="2009 United States bank failures" style="text-decoration: none; background: none;">2009 United States bank failures</a></li><li style="margin-bottom: 0.1em;"><a href="https://en.wikipedia.org/wiki/Bank_regulation_in_the_United_States" title="Bank regulation in the United States" style="text-decoration: none; background: none;">Bank regulation in the United States</a></li><li style="margin-bottom: 0.1em;">
</li></ul></div><div></div><div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px; background-color: rgb(255, 255, 255);"><div class="rc" data-hveid="35" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQgjKAAwAg" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="https://en.wikipedia.org/wiki/IndyMac" style="cursor: pointer; text-decoration: none;">IndyMac - Wikipedia</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">https://en.wikipedia.org/wiki/IndyMac</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; margin: 1px 3px 0px; user-select: none; vertical-align: middle;"><a class="Fmb ab_button" href="https://www.google.com/search?q=indymac+failure&oq=indymac&aqs=chrome.5.69i57j0l5.9145j0j4&sourceid=chrome&ie=UTF-8#" id="am-b2" aria-label="Result details" aria-expanded="false" aria-haspopup="true" role="button" jsaction="m.tdd;keydown:m.hbke;keypress:m.mskpe" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQ7B0IJTAC" style="border-radius: 0px; cursor: default; font-weight: bold; height: 12px; line-height: 27px; margin: 1px 0px 2px; min-width: 0px; padding: 0px; text-align: center; transition: none; user-select: none; background-image: none; border: 0px; box-shadow: 0px 0px 0px 0px; filter: none; width: 13px; text-decoration: none; display: inline-block;"><span class="mn-dwn-arw" style="border-color: rgb(0, 102, 33) transparent; border-style: solid; border-width: 5px 4px 0px !important; width: 0px; height: 0px; margin-left: 3px; top: 7.5px; margin-top: -4px; position: absolute; left: 0px;" /></a><div class="action-menu-panel ab_dropdown" role="menu" tabindex="-1" jsaction="keydown:m.hdke;mouseover:m.hdhne;mouseout:m.hdhue" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQqR8IJjAC" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: 1px solid rgba(0, 0, 0, 0.2); padding: 0px; position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://webcache.googleusercontent.com/search?q=cache:TinlSbZ-Y_0J:https://en.wikipedia.org/wiki/IndyMac+&cd=3&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">The failure of IndyMac Bank on July 11, 2008, was the fourth largest bank failure in United States, and the second largest failure of a regulated thrift at that time. ... The FDIC put the assets up for auction and the bulk of the business was sold to IMB HoldCo LLC who turned this into OneWest Bank.</a><div class="cwc" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQrz0IKjAC" style="display: table; white-space: nowrap; margin: 5px 0px;"><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /><div class="sgd" style="display: table-row; vertical-align: top;"><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; 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cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Total assets‎: ‎$32.01 billion (at time of seizure by ...</a></div><div class="pgd" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQsz0ILCgBMAI" style="display: table-cell; padding-left: 15px; vertical-align: baseline;"><a class="fl" href="https://www.google.com/search?q=related:https://en.wikipedia.org/wiki/IndyMac+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwgoMAI" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Successors‎: ‎</a><a class="fl" href="https://en.wikipedia.org/wiki/OneWest_Bank" style="text-decoration: none; cursor: pointer;">OneWest Bank</a></div></div><div class="sgd" style="display: table-row; vertical-align: top;"><div class="qgd" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQsz0ILigCMAI" style="display: table-cell;">Headquarters‎: ‎<a class="fl" href="https://en.wikipedia.org/wiki/Pasadena,California" style="text-decoration: none; cursor: pointer;">Pasadena, California</a>‎, United St...</div><div class="pgd" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQsz0IMCgDMAI" style="display: table-cell; padding-left: 15px; vertical-align: baseline;">Founded‎: ‎1985 (as Countrywide Mortgage Inv...</div></div></div></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px; background-color: rgb(255, 255, 255);"><div class="rc" data-hveid="49" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQgxKAEwAw" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="http://money.cnn.com/2008/07/12/news/companies/indymac_fdic/" style="cursor: pointer; text-decoration: none;">The rise and fall of IndyMac - Jul. 12, 2008 - CNN Money</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">money.cnn.com/2008/07/12/news/companies/indymacfdic/</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; 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background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: 1px solid rgba(0, 0, 0, 0.2); padding: 0px; position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:bJnDIuEJFvsJ:money.cnn.com/2008/07/12/news/companies/indymac_fdic/+&cd=4&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:money.cnn.com/2008/07/12/news/companies/indymac_fdic/+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwg2MAM" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:money.cnn.com/2008/07/12/news/companies/indymac_fdic/+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwg2MAM" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Jul 12, 2008 - IndyMac, with assets of $32 billion and deposits of $19 billion, is the fifth bank to fail this year. Between 2005 and 2007, only three banks failed. And in the past 15 years, the FDIC has taken over 127 banks with combined assets of $22 billion, according to FDIC records.</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px; background-color: rgb(255, 255, 255);"><div class="rc" data-hveid="57" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQg5KAIwBA" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="https://www.fdic.gov/bank/individual/failed/IndyMac.html" style="cursor: pointer; text-decoration: none;">FDIC: Failed Bank Information - Bank Closing Information for IndyMac ...</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">https://www.fdic.gov/bank/individual/failed/IndyMac.html</cite><div class="action-menu ab_ctl" style="display: inline; 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cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:https://www.fdic.gov/bank/individual/failed/IndyMac.html+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwg-MAQ" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:https://www.fdic.gov/bank/individual/failed/IndyMac.html+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwg-MAQ" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Information for IndyMac Bank, F.S.B., and IndyMac Federal Bank, F.S.B., .... claimed within 18 months of the failure of Indymac Bank was sent to the FDIC by One ...</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 28px; background-color: rgb(255, 255, 255);"><div class="rc" data-hveid="63" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQg_KAMwBQ" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="http://www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432" style="cursor: pointer; text-decoration: none;">IndyMac: The Inside Story on a Bank Failure and Rebirth</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; margin: 1px 3px 0px; user-select: none; vertical-align: middle;"><a class="Fmb ab_button" href="https://www.google.com/search?q=indymac+failure&oq=indymac&aqs=chrome.5.69i57j0l5.9145j0j4&sourceid=chrome&ie=UTF-8#" id="am-b5" aria-label="Result details" aria-expanded="false" aria-haspopup="true" role="button" jsaction="m.tdd;keydown:m.hbke;keypress:m.mskpe" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQ7B0IQTAF" style="border-radius: 0px; 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position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">IndyMac: The Inside Story of a Bank Failure and Rebirth. Security VP Offers Scoop on Institution's Transition to New Banking Model Linda McGlasson • May 4, ...</a></div><div class="s" style="max-width: 48em; line-height: 18px;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;"></a><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;"></a><div class="rc" data-hveid="104" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQhoKAAwDw" style="position: relative;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;"></a><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:SYMAO7qlWPMJ:www.bankinfosecurity.com/indymac-inside-story-bank-failure-rebirth-a-1432+&cd=6&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;"></a><a href="http://www.investopedia.com/articles/economics/09/fall-of-indymac.asp" style="cursor: pointer; text-decoration: none;">Too Good To Be True: The Fall Of IndyMac | Investopedia</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">www.investopedia.com/articles/economics/09/fall-of-indymac.asp</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; 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user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:www.investopedia.com/articles/economics/09/fall-of-indymac.asp+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwhtMA8" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:www.investopedia.com/articles/economics/09/fall-of-indymac.asp+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwhtMA8" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">The IndyMac bank failure on July 11, 2008, left many shocked and wondering how such a large and formidable bank could collapse. The banking giant rose ...</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px;"><div class="rc" data-hveid="110" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQhuKAEwEA" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="https://www.propublica.org/article/anatomy-of-a-bank-failure-922" style="cursor: pointer; text-decoration: none;">Anatomy of a Bank Failure - ProPublica</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">https://www.propublica.org/article/anatomy-of-a-bank-failure-922</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; margin: 1px 3px 0px; user-select: none; vertical-align: middle;"><a class="Fmb ab_button" href="https://www.google.com/search?q=indymac+failure&oq=indymac&aqs=chrome.5.69i57j0l5.9145j0j4&sourceid=chrome&ie=UTF-8#" id="am-b16" aria-label="Result details" aria-expanded="false" aria-haspopup="true" role="button" jsaction="m.tdd;keydown:m.hbke;keypress:m.mskpe" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQ7B0IcDAQ" style="border-radius: 0px; 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position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://webcache.googleusercontent.com/search?q=cache:kM9ebLpwefEJ:https://www.propublica.org/article/anatomy-of-a-bank-failure-922+&cd=17&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:https://www.propublica.org/article/anatomy-of-a-bank-failure-922+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwhzMBA" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:https://www.propublica.org/article/anatomy-of-a-bank-failure-922+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwhzMBA" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Sep 22, 2008 - The current cost of the IndyMac failure, according to the FDIC, is $8.9 billion—a number that would undoubtedly have been smaller had the ...</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px;"><div class="rc" data-hveid="117" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQh1KAIwEQ" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="http://www.nytimes.com/2008/07/13/business/worldbusiness/13iht-indy.4.14456887.html" style="cursor: pointer; text-decoration: none;">IndyMac one of the largest bank failures in U.S. history - The New York ...</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">www.nytimes.com/2008/07/13/business/worldbusiness/13iht-indy.4.14456887.html</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; margin: 1px 3px 0px; user-select: none; vertical-align: middle;"><a class="Fmb ab_button" href="https://www.google.com/search?q=indymac+failure&oq=indymac&aqs=chrome.5.69i57j0l5.9145j0j4&sourceid=chrome&ie=UTF-8#" id="am-b17" aria-label="Result details" aria-expanded="false" aria-haspopup="true" role="button" jsaction="m.tdd;keydown:m.hbke;keypress:m.mskpe" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQ7B0IdzAR" style="border-radius: 0px; cursor: default; font-weight: bold; height: 12px; line-height: 27px; margin: 1px 0px 2px; min-width: 0px; padding: 0px; text-align: center; transition: none; user-select: none; background-image: none; border: 0px; box-shadow: 0px 0px 0px 0px; filter: none; width: 13px; text-decoration: none; display: inline-block;"><span class="mn-dwn-arw" style="border-color: rgb(0, 102, 33) transparent; border-style: solid; border-width: 5px 4px 0px !important; width: 0px; height: 0px; margin-left: 3px; top: 7.5px; margin-top: -4px; position: absolute; left: 0px;" /></a><div class="action-menu-panel ab_dropdown" role="menu" tabindex="-1" jsaction="keydown:m.hdke;mouseover:m.hdhne;mouseout:m.hdhue" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQqR8IeDAR" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: 1px solid rgba(0, 0, 0, 0.2); padding: 0px; position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:www.nytimes.com/2008/07/13/business/worldbusiness/13iht-indy.4.14456887.html+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwh5MBE" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:www.nytimes.com/2008/07/13/business/worldbusiness/13iht-indy.4.14456887.html+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwh5MBE" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Jul 13, 2008 - The seizure of IndyMac Bancorp by U.S. regulators marks one of the largest bank failuresin American history. The bank, once part of ...</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px;"><div class="rc" data-hveid="123" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQh7KAMwEg" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="http://www.nytimes.com/2008/07/29/business/worldbusiness/29iht-indymac.1.14851238.html" style="cursor: pointer; text-decoration: none;">Chronology of a U.S. bank failure - The New York Times</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv _SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">www.nytimes.com/2008/07/29/business/.../29iht-indymac.1.14851238.html</cite></div>Jul 29, 2008 - Just before 3 p.m. on July 11, federal regulators arrived at Perry's headquarters here and seized IndyMac, which was buckling under its burden ...</div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 26px;"><div class="rc" data-hveid="126" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQFQh-KAQwEw" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="http://www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/" style="cursor: pointer; text-decoration: none;">IndyMac: IndyMac History and Collapse. The Saga of the Second ...</a></h3><div class="s" style="max-width: 48em; line-height: 18px;"><div class="f kv SWb" style="height: 18px; line-height: 16px; white-space: nowrap;"><cite class="Rm" style="font-style: normal;">www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-t...</cite><div class="action-menu ab_ctl" style="display: inline; position: relative; margin: 1px 3px 0px; user-select: none; vertical-align: middle;"><a class="_Fmb ab_button" href="https://www.google.com/search?q=indymac+failure&oq=indymac&aqs=chrome.5.69i57j0l5.9145j0j4&sourceid=chrome&ie=UTF-8#" id="am-b19" aria-label="Result details" aria-expanded="false" aria-haspopup="true" role="button" jsaction="m.tdd;keydown:m.hbke;keypress:m.mskpe" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQ7B0IgAEwEw" style="border-radius: 0px; cursor: default; font-weight: bold; height: 12px; line-height: 27px; margin: 1px 0px 2px; min-width: 0px; padding: 0px; text-align: center; transition: none; user-select: none; background-image: none; border: 0px; box-shadow: 0px 0px 0px 0px; filter: none; width: 13px; text-decoration: none; display: inline-block;"><span class="mn-dwn-arw" style="border-color: rgb(0, 102, 33) transparent; border-style: solid; border-width: 5px 4px 0px !important; width: 0px; height: 0px; margin-left: 3px; top: 7.5px; margin-top: -4px; position: absolute; left: 0px;" /></a><div class="action-menu-panel ab_dropdown" role="menu" tabindex="-1" jsaction="keydown:m.hdke;mouseover:m.hdhne;mouseout:m.hdhue" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQqR8IgQEwEw" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: 1px solid rgba(0, 0, 0, 0.2); padding: 0px; position: absolute; right: auto; top: 12px; z-index: 3; transition: opacity 0.218s; box-shadow: rgba(0, 0, 0, 0.2) 0px 2px 4px; left: 0px; visibility: hidden;"><ol style="margin: 0px; padding: 0px; border: 0px;"><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="http://webcache.googleusercontent.com/search?q=cache:QA248ghPRDQJ:www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/+&cd=20&hl=en&ct=clnk&gl=us" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li><li class="action-menu-item ab_dropdownitem" role="menuitem" style="margin: 0px; padding: 0px; border: 0px; list-style: none; user-select: none; cursor: pointer;"><a class="fl" href="https://www.google.com/search?q=related:www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwiDATAT" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;" /></li></ol></div></div></div><a class="fl" href="https://www.google.com/search?q=related:www.doctorhousingbubble.com/indymac-indymac-history-and-collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/+indymac+failure&tbo=1&sa=X&ved=0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQHwiDATAT" style="text-decoration: none; cursor: pointer; display: block; padding: 7px 18px; outline: 0px;">Jul 13, 2008 - It is rather appropriate that the second largest savings and loan failure in history that ofIndyMac Bank occurs here in Southern California.</a></div></div></div><div class="g" style="line-height: 1.2; margin-top: 0px; margin-bottom: 28px;"><div class="rc" data-hveid="133" data-ved="0ahUKEwjs8eTQ65TRAhUIQSYKHWJVBBsQtgIIhQEoBTAU" style="position: relative;"><h3 class="r" style="font-weight: normal; margin: 0px; padding: 0px; overflow: hidden; text-overflow: ellipsis; white-space: nowrap;"><a href="https://www.youtube.com/watch?v=8ND7zW-lHwI" style="cursor: pointer; text-decoration: none;">IndyMac Bank, Failure With Desperate Customers - YouTube</a></h3><div>=</div></div></div></div></div></div></div><div></div></div></div></div></div>