The Deal
Tuesday, November 24, 
11:05 am

Treasury investigates OTS chief

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Scott M. Polakoff , the acting head of the Office of Thrift Supervision, Thursday was placed on leave pending an investigation by the Treasury Department's inspector general into revelations that the agency allowed some thrifts to improperly backdate capital levels in their quarterly regulatory reports.

In Polakoff's place, John E. Bowman, deputy director and chief counsel, will serve as OTS acting director.

Polakoff is the second OTS official caught up in the backdating investigation. Darryl Dochow, the senior OTS official in the western region, was forced to resign after the inspector general found that IndyMac Bancorp was permitted to overstate its financial health just weeks before the California mortgage lender was seized by the Federal Deposit Insurance Corp.

OTS has acknowledged that four other thrifts it regulates were permitted to backdate capital levels, though the agency has not named them. - Bill McConnell

See announcement from Treasury
See story from Reuters

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