Posted on 01/02/2009 2:57:18 PM PST by NormsRevenge
A group of private investors agreed today to buy IndyMac Bank, the Pasadena specialist in exotic home loans that collapsed in July and became the third-largest bank to fail since the government began insuring deposits in 1934.
The Federal Deposit Insurance Corp., which has run IndyMac since its collapse, said the bank would be purchased by IMB Management Holdings, a New York-based partnership led by buyout expert J. Christopher Flowers, hedge-fund operator John Paulson and Steven Mnuchin, chairman of private equity firm Dune Capital Management.
IMB Management Holdings and the investor group will inject about $1.3 billion in new capital into the emerging bank and form a new holding company that will own and operate it under a thrift charter. What is being called New IndyMac also will bring in "an experienced senior management team to run the day-to-day operations of the thrift," the FDIC said in a statement.
Under the complex deal, the buyers will pay the FDIC about $13.9 billion and will share losses with the FDIC. The bank will assume the first 20% of losses, after which the FDIC would absorb the lion's share of losses.
There was no announcement of the operational plans the private investors have in store for IndyMac. The FDIC said full details of the agreement would be withheld until the deal's expected close in late January or early February.
The agency said IndyMac's cost to the federal deposit insurance fund would be $8.5 billion to $9.4 billion, in line with previous loss estimates of $8.9 billion.
(Excerpt) Read more at latimes.com ...
I wonder what Chuckie’s cut is?
The LA Slimes glosses over just who will pay. It's way past time to start getting real honest about who pays for all of this.
You know, it’s a terrible thing what happened to the banks; but I am beginning to wonder if this was a set up to do so so that snarky people could get control and/or ruin the US.
Will we live long enough to see who emerges from the rat hole of Wall Street?
Who the heck knows.
Exactly. IMB Management Holdings = friends of Schumer?
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