Government regulators aided in falsifying bank financial records.

[vhx]

http://abcnews.go.com/print?id=6658365

A brewing fraud scandal at the Treasury Department may be worse than officials originally thought.

Investigators probing how Treasury regulators allowed a bank to falsify financial records hiding its ill health have found at least three other instances of similar apparent fraud, sources tell ABC News.

In at least one instance, investigators say, banking regulators actually approached the bank with the suggestion of falsifying deposit dates to satisfy banking rules -- even if it disguised the bank's health to the public.

Treasury Department Inspector General Eric Thorson announced in November his office would probe how a Savings and Loan overseer allowed the IndyMac bank to essentially cook its books, making it appear in government filings that the bank had more deposits than it really did. But Thorson's aides now say IndyMac wasn't the only institution to get such cozy assistance from the official who should have been the cop on the beat.

The federal government took over IndyMac in July, after the bank's stock price plummeted to just pennies a share when it was revealed the bank had financial troubles due to defaulted mortgages and subprime loans, costing taxpayers over $9 billion.

Darrel Dochow, the West Coast regional director at the Office of Thrift Supervision who allowed IndyMac to backdate its deposits, has been removed from his position but he remains on the government payroll while the Inspector General's Office investigates the allegations against him. Investigators say Dochow, who reportedly earns $230,000 a year, allowed IndyMac to register an $18 million capital injection it received in May in a report describing the bank's financial condition in the end of March.

"They [IndyMac] were able to maintain their well-capitalized threshold and continue to use broker deposits to make loans," said Marla Freedman, an assistant Inspector General at Treasury. "Basically, while the institution was having financial difficulty, it kept the public from knowing earlier than it otherwise should have or would have."

IIRC 10,000 IndyMac depositors were told their funds were safe just before it went under. Some peoples life savings were lost. Talk about being lied to, I'd be furious and wanting these people to burn.

So... why has this not been posted anywhere?

 

[babylon5]

Another middle finger from these banking institutions to taxpayers.

 

[MovingTarget]

Originally posted by: babylon5
Another middle finger from these banking institutions to taxpayers.

We smoke* when we flip the bird!















*smokes are made from high-quality incriminating documents. mmmm...evidence...

 

[BoberFett]

Originally posted by: MovingTarget
We smoke when we flip the bird!

So maybe you'd be a good person to ask who wrote "Da Moon Rulez #1" in my car with a key?

 

[Jhhnn]

Just in case nobody else realizes it, regulatory positions in the Bush admin were awarded on the basis of patronage, where the grantee was expected to take the money, stfu, and make sure none of their underlings said anything, either... and if they did anything at all, it was to help the banks do whatever they wanted....

http://www.washingtonpost.com/...R2008112202213_pf.html

Only the most lackadaisical of Indymac depositors lost money- those who had money in accounts above the $100K federal insurance limit. All they got was $100K per account, which was pretty easy to cover under separate accounts- his, hers, joint, and under the names of their children... anybody who lost money, other than the taxpayers, deserved it.

 

[Craig234]

A direct result of the voters who chose 'who they would rather have a beer with' as their measure of who to vote for, who let themselves be propagandized into pro-Bush views.

They'll try to say it doesn't matter which party you vote foer, and ignore the blatant way the Bush administration corruptly sold the government to the highest bidder by not only appointing the 'friends' (lobbyists and executives) of donor industries to regulatory positions, but formalizing the corruption in the 'K Street project' that was 'pay to play' government.

All part of the attempted 'permanent Republican majority' these thugs were after with the strong backing and votes of the righties here.

In fact, my recollection is not of any clear case of a righty here voting against Bush in 2000 and 2004, but maybe 1 or 2 I've forgotten.

This is a small example of the reulting corruption.

Liberals told you so, especially in 2004.

 

[smokeyjoe]

http://www.jstor.org/pss/1805350

I think this link is interesting and relates to the topic though it is not so much about corruption.. I just stumbled upon it the other day and saved it for reference. If you can't figure it out, the words are from FDR.. even though some blame his New Deal for a lot of what has gone wrong with corporations today. It might take a little longer than most sites to load, be patient..

 

[mugs]

Originally posted by: vhx
IIRC 10,000 IndyMac depositors were told their funds were safe just before it went under. Some peoples life savings were lost. Talk about being lied to, I'd be furious and wanting these people to burn.

So... why has this not been posted anywhere?

What type of accounts did these people have their money in?