December 10, 2012| 9:00 a.m.

Three former IndyMac Bank executives must pay the government $169 million for their role in the Pasadena lender's collapse, delivering a victory to the Federal Deposit Insurance Corp. in its efforts to recover losses from the financial crisis.

In verdicts delivered Friday, jurors in federal court in Los Angeles agreed with the government's claim that the executives, who ran a construction-lending division at IndyMac, had been negligent in approving 23 loans to developers and homebuilders who never repaid them.

Lawyers for the FDIC had argued that the executives — Scott Van Dellen, Richard Koon and Kenneth Shellem — violated bank safety standards in their eagerness to reap bonuses for generating higher volumes of the development and construction loans.

Read More >>

-- E. Scott Reckard, Los Angeles Times