Senator Chuck Grassley, the top Republican on the SenateFinance Committee, said the OTS needed to hold the appropriatepeople accountable. "This report paints the disturbing picture of a regulatoryagency being much too cozy with the industry it's supposed tobe regulating," Grassley said in a statement. Rich Delmar, counsel to the inspector general for Treasury,said the office planned "to review the other corrective actionstaken" at OTS. The Treasury audit report released on Thursday follows theinspector general's "material loss review" of IndyMac, whichwas seized in July after loan defaults mounted and tightcapital markets caused losses on mortgages it could not sell. That material loss review uncovered the capital backdatingat IndyMac and other thrifts, prompting the audit report.
The report does not name the five other thrifts but notesthat the capital contributions that were backdated occurred atthe institutions from January 2007 through August 2008. BankUnited Financial Corp BKUNA.O is among theinstitutions that were included in the report but not named,according to a source familiar with the matter. The troubledFlorida lender is in the process of being sold and has drawn atleast one bid from a private equity consortium, according to asource familiar with the matter. The OTS submitted a letter in response to the inspectorgeneral report, saying it has focused "extensive resources" onthe issue of backdated capital contributions. It said it hasprovided detailed guidance to its staff and the institutions itsupervises about proper recognition of capital contributions. (Reporting by Karey Wutkowski and John Poirier; additionalreporting by Paritosh Bansal; editing by John Wallace) Stocks Regulatory News Bonds.
Investors Bancorp to Acquire $250 Million in Deposits and 6 Banco PopularBranches in New JerseySHORT HILLS, N.J., May 21 /PRNewswire-FirstCall/ -- Investors Bancorp, Inc.(Nasdaq: ISBC) announced today that Investors Savings Bank ("Investors"), itswholly-owned subsidiary, has signed a purchase and assumption agreement withBanco Popular North America to acquire approximately $250 million of depositsand six New Jersey branch offices for a deposit premium of 1.0% Investors isnot acquiring loans as part of this transaction. Commenting on the transaction, Kevin Cummings, President and CEO of Investorssaid "Building upon our recent acquisition of American Bancorp of New Jersey,this transaction enables us to strategically expand our franchise, leverageour strong financial position and enhance shareholder value."Investors'existing branch network will be complemented by adding branch offices inClifton(2), Montclair, Newark(2) and East Orange, New Jersey Mr. Cummings continued, "We look forward to providing the same high quality,personalized level of customer service experienced by the depositors andcommunities served by these branch offices." Investors expects to retain thecurrent staff at these branch offices. This transaction has received approvals from the boards of directors of bothcompanies, and remains subject to regulatory approval. The acquisition isexpected to close during the quarter ending September 2009 About Investors Bancorp, Inc.Investors Bancorp, Inc. BROOMFIELD, Colo., May 21 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE:BLL) has been selected for inclusion in the FTSE4Good Index Series.
