Darrel Dochow, Western regional director of the Office of Thrift Supervision allowed Indymac Bank to backdate $50 million transaction so as to falsify its health. It failed two months later.
He’s been relieved of duties pending an investigation. The cover story, the pretend explanation, here is that he did this because he din’t want to lose control of the bank to the FDIC. But given Madoff, now this, the corruption in DC among federal financial regulators now seems pervasive.
But it gets worse.
The [Los Angeles] Times had reported in October that Dochow had returned to a senior post after having been demoted because of his role in the 1989 collapse of Lincoln Savings & Loan, at the time the biggest bank failure ever. Two years earlier, Dochow, then the head of supervision and regulation at the Federal Home Loan Bank Board, had rebuffed recommendations from regulators in California and other states calling for Lincoln to be put out of business.
“This guy is the most infamous banking regulator in the country, and somehow he ended up back in charge,” Black said.
Corrupt, deliberately do-nothing ideologues have taken over federal regulatory agencies in D.C. This is the legacy of Bush, the worst president ever certainly and in a year or so, as the investigations continues, I predict his regime will be called the most corrupt too.
If investigators can show fraudulent intent by Dochow, then this becomes a criminal matter.