WASHINGTON — A report released Thursday by the Treasury Department's Office of the Inspector General details how the Office of Thrift Supervision allowed thrifts to backdate capital infusions, and criticizes senior agency officials for taking no action when they discovered other thrifts had engaged in backdating — even, in one instance, when the OTS had expressly told the thrift not to do so.

"We consider these matters very serious and find it alarming that such high level OTS officials were not only aware of the backdating at two thrifts, but either directed or authorized the thrifts to backdate the capital contribution," the IG wrote. "Approving or directing the thrifts to backdate these contributions is inappropriate as the accounting treatment is not in accordance with generally accepted accounting principles and allows for misleading financial reporting by the thrifts."

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