High-Level U.S. Bank Regulators Allowed Capital Backdating by Thrifts, Report

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.

OTS Involvement With Backdated Capital Contributions by Thrifts Report »

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