IndyMac Execs Can’t Beat Most FDIC Bad Loan Claims

Law360, New York (October 10, 2012, 5:13 PM EDT) -- A California federal judge on Friday largely upheld the Federal Deposit Insurance Corp.’s claims against a group of former IndyMac Bancorp Inc. executives in a suit accusing them of contributing to IndyMac's downfall by negligently approving dozens of bad commercial loans.

U.S. District Judge Dale S. Fischer mostly granted the FDIC’s motion to dismiss the IndyMac Homebuilder Division executives’ affirmative defenses, including their argument that Delaware law applied to the case, meaning they couldn’t be held personally liable.

Although the bank was incorporated in Delaware, the executives’...
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