INDYMAC GETS THE SHAFT IN FEDERAL COURT
Jurors awarded this $169M verdict (PDF) against three former IndyMac Bank executives for originating dubious construction and development loans. It happened last Friday in Los Angeles at the US District Court for the Central District of California.
$169M Verdict Against Former Indyac Bank Executives
- That the former bank executives were too permissive in underwriting and originating a host of development and construction loans
- Their permissiveness was negligent
- And their permissiveness breached the fiduciary duty of care each executive owed to the bank before it failed
The jurors agreed with the FDIC on the 21 loans that went to trial. The result: a verdict for the FDIC on every count—and, in one combination or another, against each former executive respectively—totaling about $169M in damages.