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