FDIC Hits Ex-IndyMac CEO With $600M Negligence Suit

Law360, New York (July 7, 2011, 2:12 PM EDT) -- The Federal Deposit Insurance Corp. on Wednesday hit the former CEO of failed IndyMac Bank FSB with a $600 million damages suit in California federal court that claims he negligently oversaw the issuance of $10 billion in bad residential loans.

"Perversely, instead of enforcing credit standards, Perry chose to roll the dice in an aggressive gamble to increase market share while sacrificing credit standards," the FDIC's suit said.

The agency, as receiver for the Los Angeles-based bank, which flopped in July 2008, claims that lone defendant...
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