No sooner had I blogged about the Federal Deposit Insurance Corp.’s delayed public response to the IndyMac failure when I ran across what may be a costly blunder for the federal regulator.
It seems that when it took over an Illinois-based thrift seven years ago, the thrift continued to make subprime mortgage loans.
Ouch.
The blunder was revealed today in a Wall Street Journal story about a Texas-bank that is suing the FDIC for selling it a portfolio of loans that the bank alleges had some of those problem loans.
This is not a good start to the week at the FDIC.