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IndyMac CEO settles FDIC financial crisis case

Dec 17 2012 Sarah N. Lynch, Reuters

Former IndyMac Chief Executive Michael Perry agreed on Friday to settle a lawsuit filed by the Federal Deposit Insurance Corp that stemmed from the collapse of the bank during the financial crisis, the FDIC said. The FDIC had alleged Perry "negligently" allowed the production of a pool of more than $10 billion in "risky" residential loans. Under the terms of the settlement, FDIC spokesman Andrew Gray said it will recover $1 million in Perry's personal assets and bar Perry from the banking industry. The collapse of the California-based bank cost the FDIC, which stands behind bank deposits, an estimated $12.8 billion. The bank was seized by regulators in July 2008. The FDIC will also recover up to $11 million in insurance policy money. In a statement, Perry's defense lawyers at Covington and Burling said their client has "steadfastly denied the allegation" he was negligent and "continues to deny liability as part of the settlement." They added that the FDIC had "extracted"

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