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FDIC Files Suit Against IndyMAC

in Foreclosure, Government, Secondary Market July 11, 2011 800 Views

The Federal Deposit Insurance Corporation (FDIC) has filed suit against former IndyMAC Bancorp Inc. Chief Executive Officer Michael Perry for $600 million in losses caused by risky mortgage loans.

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The FDIC accuses Perry of purchasing $10 billion in risky residential loans, which he intended to sell on the secondary market.

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The regulator insists Perry knew the secondary market was unstable and illiquid when he made the purchases.

The loans eventually transferred into more than $600 million in losses.

Regulators seized IndyMAC in July 2008.
The FDIC filed the suit last week in a Los Angeles federal Court.

The Securities and Exchange Commission filed a lawsuit against Perry and two other executives in February, accusing them of failing to warn investors when the bank began to deteriorate, according to ""_Bloomberg_."":http://www.bloomberg.com/news/2011-07-07/fdic-sues-ex-indymac-chief-michael-perry-over-600-million-in-bank-losses.html

Based, in Pasadena, California, IndyMAC once ranked as the second-largest U.S. independent mortgage lender.

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About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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