The Federal Deposit Insurance Corp. filed a negligence lawsuit against former IndyMac CEO Michael Perry last week, accusing the executive of producing risky home mortgages that eventually soured, causing more than $600 million in losses.
Perry's attorney Jean Veta responded to the complaint Monday saying, "The lawsuit filed by the FDIC against Michael Perry is baseless. Mr. Perry led IndyMac with integrity and intelligence. The FDIC’s belated claim that Mr. Perry was somehow 'negligent' is dead wrong."
In the complaint, the federal regulator, which took over IndyMac after the bank's failure in 2008, accuses Perry of putting the bank at risk by failing to end the "production of a pool of more than $10 billion in risky, residential loans intended for sale into a secondary market." The FDIC claims Perry knew production of the loans was occurring at a time when the secondary market was becoming unstable and illiquid due to ongoing concerns over credit quality.
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