Scott Polakoff, acting director of the Office of Thrift Supervision has been placed on leave as the Treasury Department continues its probe of how the agency has regulated some federally chartered thrifts, according to media reports.
"OTS Senior Deputy Director and Chief Operating Officer Scott M. Polakoff, who was serving as Acting Director, is on leave pending a review by the Department of the Treasury of the OTS's August 2008 actions related to post-period capital contributions" the agency said.
OTS Chief Counsel, John Bowman, has been named acting director.
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The subject of the probe is the OTS decision to allow IndyMac Bancorp to backdate a May 2008 $18 million capital infusion to the first quarter. Critics charge the decision allowed IndyMac to hide how poorly it was capitalized and avoid penalties for mismanaging its capital flow. IndyMac failed a few months later, a collapse that cost the Federal Deposit Insurance Corp. $10.7 billion, the costliest failure in U.S. history.
Later OTS review of that decision uncovered four other cases of similar decisions, some of which allegedly helped lead to the collapse of other institutions.
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