Three former executives of IndyMac Bank are being accused of fraud from federal regulators, under the notion of misleading investors about the mortgage lender’s finaces before it’s collapse in 2008.
Blair Abernathy being one of the three executives has bee reported to, “agreed to settle, paying a $100,000 fine and $26,592 in restitution plus interest. In addition, Abernathy will be barred from practicing as an accountant for any public company for two years; after that time he can apply to be reinstated. He neither admitted nor denied wrongdoing but did agree to refrain from future violations of the securities laws.”
The other two execs disputed the charges against them and will contest them in court. On an employee engagement level, a company’s morales comes from the top and trickles downward. Looks like it hit rock bottom since the bank went bankrupt.
“The collapse and seizure by the government of IndyMac Bank, with about $30.2 billion in assets, was one of the biggest bank failures in U.S. history. It also was the costliest failure in the current wave for the federal deposit insurance fund, with an estimated loss of $12.7 billion. IndyMac Bancorp’s bankruptcy filing also was one of the largest on record.”