IndyMac Bancorp has raised the ire of its shareholders and customers with its seizure by the Federal Deposit Insurance Corp. Now, there's more to keep the blood boiling as the Pasadena, Calif.-based lender is reportedly under investigation by the FBI for possible fraud for home loans to risky borrowers, according to wire reports.
Continue reading below
The FBI reportedly has been monitoring the company over an undisclosed period. The news should be upsetting to investors that should feel betrayed by CEO Michael Perry, who asserted IndyMac would be better off as a standalone company and pleaded over the last year for time and patience so it could turn around its bottom line. The alleged FBI investigations come on top of other claims recently from a published report from the nonprofit Center for Responsible Lending, flagged by Market Movers' Felix Salmon, that suggested the company encouraged dubious loan requests, and in many cases, encouraged
distortion of facts to feed the mortgage machine. - Gerald Magpily
Roll Call: IndyMac bank run video
Why IndyMac is heading down
