Regulator Takes Heat Over IndyMac Failure

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As the mortgage crisis deepened in California last year, officials in Washington put the fate of thrifts in the West in the hands of a veteran regulator who had a memorable role in the last major crisis in the savings and loan industry.

Darrel W. Dochow was the head of supervision and regulation at the Federal Home Loan Bank Board in Washington when Lincoln Savings & Loan of Irvine failed in 1989, at the time the largest and costliest thrift failure ever.

Dochow and other regulators in Washington balked at recommendations from their regional counterparts that it be shut down two years earlier. Its collapse added billions to the taxpayer-funded bailout of the S & L; industry, and its victims included thousands of elderly investors who had bought bonds from the troubled thrift.

Eventually he was relieved of his high-level duties and demoted. Now, Dochow is back on the beat as the top U.S. banking cop in the West amid another financial crisis.


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