One of the nation's chief bank regulators has been placed on leave pending the results of an investigation into his agency's role in allowing several banks to falsify financial statements.
The Office of Thrift Supervision announced the sudden replacement of Scott Polakoff as acting director yesterday evening. The agency is a unit of the Treasury Department that regulates banks focused on mortgage lending.
Polakoff was removed while the department reviews findings by its inspector general about "certain actions taken by management" at the OTS, according to a Treasury statement. A spokeswoman declined to elaborate.
The Treasury's inspector general is investigating a number of instances in which OTS employees allowed banks to exaggerate their financial health in required filings by including money they did not receive until after the reporting period. ...
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/26/AR2009032603264.html?nav=rss_businessSomeone should tell Obama that the idea is to appoint more people to Treasury positions rather than get rid of them.
