IndyMac trustee sues over transfers

The trustee overseeing the liquidation of IndyMac Bancorp has sued to recover more than $700 million that he says was fraudulently transferred from the company to its bank unit before the subsidiary was seized by regulators last year.

The transfers from the holding company to the IndyMac Bank unit from 2006 to 2008 totaled at least $736.4 million, trustee Alfred Siegel said in a lawsuit filed Friday in federal court in Washington.

The suit was filed against the Federal Deposit Insurance Corp. because it was the receiver of IndyMac Bank after the home lender failed.