WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission was dealt a setback in its cases tied to the financial collapse when a federal judge dismissed large parts of its case against former executives at failed mortgage lender IndyMac Bancorp.
In a verbal order entered on Monday and released as a transcript on Tuesday, U.S. District Judge Manuel Real gave an extensive explanation for siding with the defendants and rejecting many of the SEC's allegations in the case.
The lawsuit is one of dozens of cases the SEC has brought against executives at notable firms for conduct that allegedly fueled the financial crisis.
The underlying theme in the IndyMac case, as well as other cases, is that executives failed to adequately disclose risks as problems emerged in 2007 and 2008.
The SEC has sued former executives at mortgage finance agencies Fannie Mae and Freddie Mac on similar grounds, alleging that six former top officials approved misleading statements
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