WASHINGTON Dec 14 Former IndyMac Chief
Executive Michael Perry has agreed to settle a lawsuit filed by
the Federal Deposit Insurance Corp that stemmed from the
collapse of the bank during the financial crisis, his lawyers
announced on Friday.
The FDIC had accused Perry of being negligent in not
reducing the bank's core loan volume. Perry's defense lawyers at
Covington and Burling said that under the settlement, the FDIC
plans to seek $11 million from IndyMac's insurers, as well as a
$1 million cash payment. Perry will also be barred from the
banking industry, according to the lawyers.
California-based IndyMac, which specialized in a type of
mortgage that often required minimal documentation from
borrowers, was seized by banking regulators in July 2008. Its
collapse cost the FDIC, which stands behind bank deposits, an
estimated $12.8 billion.