Former IndyMac Chief Executive Michael Perry has agreed to settle a lawsuit filed by the Federal Deposit Insurance Corp. that stemmed from the collapse of the bank during the financial crisis, his lawyers announced on Friday.
The FDIC had accused Perry of being negligent in not reducing the bank's core loan volume. Perry's defense lawyers at Covington and Burling said that under the settlement, the FDIC plans to seek $11 million from IndyMac's insurers, as well as a $1 million cash payment. Perry will also be barred from the banking industry, according to the lawyers.
California-based IndyMac, which specialized in a type of mortgage that often required minimal documentation from borrowers, was seized by banking regulators in July 2008. Its collapse cost the FDIC, which stands behind bank deposits, an estimated $12.8 billion.