According to a report released last week by the _""New York Times"": an independent investigator of the ""U. Treasury Department"": uncovered evidence that officials from the nation's banking supervisory body, the ""Office of Thrift Supervision"": (OTS), helped the failing Indy Mac Bancorp ""paper over"" its financial difficulties.Just two months before Indy Mac went under, a top federal banking regulator allowed the bank to backdate an million capital infusion from its parent company to cover up a first quarter deficit and ultimately gloss over its deepening problems, the _Times _said.Reform proposals from Henry Paulson, President Barack Obama, and the U. Congress proposed to merge the OTS with the Office of the Comptroller of the Currency.Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated merger of OTS with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors, and the Consumer Financial Protection Bureau (CFPB) as of July 21, 2011. Other regulatory agencies like the OTS include the Office of the Comptroller of the Currency, the FDIC, the Federal Reserve System, and the National Credit Union Administration. Bush Administration, Federal District Judge Royce C.
The OTS was initially seen as an aggressive regulator, but was later lax.Indy Mac was seized by the ""Federal Deposit Insurance Corporation"": (FDIC) in July, at a cost of .9 billion to taxpayers.The bank's collapse has largely been attributed to its activities as a top player in the subprime mortgage market.Federal savings associations include both Federal Savings Banks and Federal Savings and Loans.The OTS was also responsible for supervising Savings and Loan Holding Companies (SLHCs) and some state-chartered institutions.
Some of the companies that failed under OTS supervision during the financial crisis of 2007–2010 include American International Group (AIG), Washington Mutual, and Indy Mac.