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Regulator Let Bank Backdate Its Books

I don't ever want to hear a Republican on my teevee talking about the joys of deregulation ever again: WASHINGTON -- The Treasury Department's inspec

I don't ever want to hear a Republican on my teevee talking about the joys of deregulation ever again:

WASHINGTON -- The Treasury Department's inspector general is probing the Office of Thrift Supervision for permitting a backdated capital infusion into IndyMac Bancorp a few months before its collapse in July.

The infusion allowed the bank to be classified as "well capitalized," instead of "adequately capitalized," at the end of the first quarter. That let IndyMac avoid having to take certain steps with the Federal Deposit Insurance Corp.

A top OTS official, West Region Director Darrel Dochow, was removed from his current duties in connection with the inquiry, according to letters released Monday by the office of Sen. Charles Grassley (R., Iowa). An OTS spokesman said Mr. Dochow wasn't available for comment.

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