Regulator Helped IndyMac Bank Cheat

Wednesday, December 24, 2008
Darrel Dochow
Darrel Dochow, West Region Director of the Office of Thrift Supervision, was removed from his post on December 22 after a review found he had permitted IndyMac Bank to count money it received in May on March’s balance sheet. This allowed IndyMac to retain its “well capitalized” status instead of downgrading to “adequately capitalized.” Inspector General Eric Thorson, who led the inquiry, stated that similar infractions have been found with other banks and lenders, and described the problem as systemic. Dochow was similarly exposed in 1987, when he helped delay an examination of Lincoln Savings and Loan which would have shown that the bank was insufficiently capitalized. At the time, he was personally excused because he was following orders from his boss.
Regulator Let IndyMac Bank Falsify Report (by Binyamin Appelbaum and Ellen Nakashima, Washington Post)


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