A report released on Thursday by the Treasury’s Office of Inspector General, suggests that high-level bank regulators were aware of and in some cases even directed thrifts to inappropriately backdate capital contribution.
The report said it was “alarming” that high-level officials at the U.S. Office of Thrift Supervision approved or directed the backdating of capital at six thrifts, including failed lender IndyMac Bank. [Reuters]
Office of Thrift Supervision director Scott Polakoff was placed on leave in March pending an investigation into his agency’s role in allowing several banks to falsify financial statements.
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