A key senator on Monday questioned regulators’ approval of a backdated cash infusion for IndyMac, a big thrift that failed in July and cost the federal insurance fund for banks nearly $9 billion.
The official at the Office of Thrift Supervision who approved the action has been reassigned within the Treasury Department agency that oversees savings and loans.
Sen. Charles Grassley of Iowa, the senior Republican on the Senate Finance Committee, said the “backdating” to March 31 of the $18 million capital injection into IndyMac by its parent company was done in May so the bank could meet first-quarter government requirements for reserves held against possible losses. Its approval by the Office of Thrift Supervision raises concerns about the agency’s role as an overseer, Grassley said in a statement
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