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FDIC Sues Former IndyMac Bank CEO Michael Perry To Recover $600M

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(Mihir Dalal) - The Federal Deposit Insurance Corp sued former IndyMac Bank Chief Executive Michael Perry to recover over $600 million in damages and costs related to residential loans made by the lender, according to court documents.

The FDIC said Perry "negligently" allowed the production of a pool of more than $10 billion in "risky," residential loans intended for sale to a secondary market. These loans were made between at least April-October 2007.

The lawsuit was filed in the district court of California.

The lending caused IndyMac, a large California mortgage lender that failed in July 2008, and its receiver to incur damages of over $600 million, court documents showed.

Last July, the FDIC also sued to recover $300 million from former executives of IndyMac.

The case is FDIC v. Perry, U.S. District Court, Central District of California, No. CV11-5561.

(Editing by Bernard Orr)

Copyright 2011 Thomson Reuters. Click for Restrictions.

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