OTS Suspends A Top Regulator
Washington-The Office of Thrift Supervision has suspended a top regulator - whose career dates back to the S&L scandal - for allegedly allowing IndyMac to backdate a capital infusion a few months before the alt-A lender/servicer was seized by the government.
The agency removed Darrel Dochow as director of its Western region, which supervised IndyMac of Pasadena, Calif., Washington Mutual, Downey Savings and several other large and now-defunct thrifts that were key players in the subprime and alt-A markets.
IndyMac - which services $180 billion in home mortgages - was about to be sold by the FDIC as this edition went to press.
The IndyMac/Dochow matter is now under investigation by the inspector general's office of the U.S. Treasury. According to an IG letter written to Sen. Charles Grassley, R-Iowa, "The impact of West region Director Dochow's approval to record the capital infusion in the quarter ending March 31, 2008 was that IndyMac was able to maintain its 'well-capitalized' status and avoid the requirement in law to obtain a waiver from FDIC to accept brokered deposits."