Just when we thought the IndyMac story was over. According to the Associated Press, the now-defunct IndyMac Bancorp Inc. is under investigation for possible fraud in connection with home loans made to risky borrowers.
Though it is not yet clear how long the FBI’s probe of the bank has been ongoing. The investigation is focused on the company – which was taken over last Friday by the FDIC – and not individuals who ran it, according to a law enforcement official who was not authorized to speak publicly about the investigation.
IndyMac Bank’s assets were seized last Friday by federal regulators after the mortgage lender gave in to pressures of tighter credit and plummeting home prices. IndyMac’s collapse is second only to that of Continental Illinois National Bank, which had nearly $40 billion in assets when it failed in 1984, according to the FDIC.
On a separate note here: most of this mortgage mess that has created viability issues across the financial space, could have been easily prevented with better oversight and lending regulations. The rules, purposely or not – apparently were loosened in order to stimulate the spike we experienced in the housing markets.
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“The investigation of fraud is focused on the company – not individuals.”? People committ fraud – a company doesn’t. People are responsible.for the decisions they make and the actions that they take. Don’t let the leadership who failed to set the standards, or set them wrong, off the hook! Accountability is a lost value in business and government today, it appears.