Thrift Regulator Polakoff Retires

Scott Polakoff, a high-ranking thrift regulator, is retiring in the wake of an investigation that found he directed the backdating of a capital contribution to an ailing thrift. After a 22-year career at the Federal Deposit Insurance Corp., Mr. Polakoff joined the Office of Thrift Supervision in 2005 and became the second in command as senior deputy director. When OTS director John Reich stepped down in February, Mr. Polakoff became the acting director. A review of the IndyMac Bank failure sparked an inquiry by the Treasury Department Inspector General into four other backdating cases where capital contributions by holding companies were made to prop up their subsidiary thrifts. The IG audit found in one unidentified case that Mr. Polakoff "directed the regional office to instruct the holding company to contribute capital and backdate the transactions." The August 2008 contribution was recorded in the thrift's second quarter financial filing with the OTS. Mr. Polakoff has been on leave since mid-March. His retirement becomes effective July 3. The Obama administration is recommending the merger of OTS into a new national banking agency as part of its regulatory reform proposal. The new agency would oversee all federally chartered banks and thrifts.