“November 12, 2015, Mr. Thomas J. Curry, Comptroller of the Currency, Subject: Appeal of FOIA Denial #2016-XXXX-F: Dear Mr. Curry: I understand Exemption 8 of the FOIA and appreciate its importance for examination reports for existing financial institutions…

…However, IndyMac Bank has not existed since July 11, 2008. IndyMac was purchased out of FDIC receivership in 2009 by private investors and merged with two other failed, financial institutions into a new financial institution called One West Bank. And recently One West Bank was sold and merged into CIT Bank. It has been more than seven years. Nothing in this 2007 examination report could possibly relate to or be of interest to CIT Bank or its regulators. The FOIA has a general presumption of mandatory disclosure. As I understand it, Congress intended the exemptions to protect against disclosure of information which would substantially harm national defense or foreign policy, individual privacy interests, business proprietary interests, and the efficient operations of government functions. And an agency has the authority to construe the exemptions as discretionary rather than mandatory when no harm would result from the disclosure of the requested information. Chrysler Corp. v. Brown, 441 U.S. 281, 293 (1979).

I believe the 12-page, 2007 Summary CAMELS report for IndyMac Bank that I requested warrants your discretion under FOIA and its spirit. The 2009 Material Loss Report on IndyMac Bank, prepared by the Inspector General, United States Treasury, has already publicly-disclosed the historical numerical CAMELS ratings for IndyMac Bank, including those related to this 2007 report. However, I believe this publicly available report was biased, inaccurate, and not prepared in accordance with Generally Accepted Government Auditing Standards (GAGAS), as it claimed. It didn’t interview management or directors and included and acknowledged the FDIC staff’s assistance, despite the fact that the FDIC itself, as receiver, could be the source of some or all of the insurance fund’s loss. This is a clear violation of GAGAS. They only reviewed loans in default and did not perform any statistical sampling that would have allowed them to draw a valid conclusion with regard to IndyMac’s underwriting standards and performance. Again, a violation of GAGAS. This report also stated that IndyMac Bank’s management did not resolve previous regulatory matters in a timely manner. This is an outright lie and any historical IndyMac Bank CAMELS report (including the 2007 summary I requested) would show it as such. Finally, they didn’t even reconcile and account for the sources of the material loss to the FDIC insurance fund, as required by law.

This biased and inaccurate 2009 Material Loss Report by the U.S. Treasury’s IG, combined with the FDIC-R’s bogus 2011 civil lawsuit against me alleging I was a negligent banker, to create a public perception of IndyMac Bank and its management that was materially false and misleading. (The FDIC-R’s suit was settled in December 2012. As part of the civil settlement, I denied its allegations and the FDIC acknowledged, that they did not allege, that I caused IndyMac Bank to fail or the insurance fund to suffer a loss. I paid no fines or penalties.) I was not a negligent banker. I was the opposite of a negligent banker.

It was wrong for the U.S. Treasury’s Inspector General to produce such a biased and inaccurate report and it was wrong for the FDIC-R to sue me with false allegations and leverage this false civil lawsuit and its personal financial risk, into a banking ban. I believe this one 12-page document will shed important new and positive light on IndyMac Bank regulator’s views and on its management. It will also show that the Material Loss Report was biased and inaccurate and the FDIC-R’s claims against me were false and frankly outrageous. Its public release might even help change the incorrect view that greedy and reckless bankers were the “root-cause” of the financial crisis. (It is changing. The truth is now being revealed almost every week, by think tanks, economists, and other financial experts.) It is a document that deserves to be in the public domain, so that others can make their own judgments. Really, everything related to IndyMac Bank and other institutions that failed during the financial crisis, deserves to be in the public domain, so that they can be read and studied and written about by anyone.” Sincerely, Michael W. Perry, Former Chairman and CEO, IndyMac Bank and Bancorp

Dear Michael Perry,
The status of your Appeal request #2016-XXXXX-AP has been updated to the following status 'Received'. To log into the PAL Application click on the Application URL below.


Office of the Comptroller of the Currency

Posted on November 13, 2015, in Postings. Bookmark the permalink. Leave a comment.

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