Posted on 03/19/2009 7:55:01 PM PDT by NormsRevenge
LOS ANGELES – Federal Deposit Insurance Corp. said late Thursday it completed the sale of IndyMac Federal Bank, one of the largest casualties of the housing bust, to OneWest Bank.
Pasadena, Calif.-based OneWest, a federal savings bank formed by an investor group that includes billionaire George Soros and Dell Inc. founder Michael Dell, agreed last December to purchase the failed California lender for $13.9 billion.
OneWest will assume all deposits of IndyMac's 33 branches, which will reopen as branches of OneWest on Friday, with deposits continuing to be insured by the FDIC.
As of Jan. 31, IndyMac had total assets of $23.5 billion and total deposits of $6.4 billion, about half the company's total at the time of its failure. OneWest has agreed to purchase all deposits and about $20.7 billion in assets at a discount of $4.7 billion.
The FDIC will retain the remaining assets for later sale.
Under terms of the sale, the new investors will shoulder the first 20 percent of the bank's loan losses, with the FDIC agreeing to take on the majority of any losses thereafter. In return, OneWest will continue a closely watched home-loan modification program launched by FDIC Chairman Sheila Bair last August.
IndyMac booked losses of $2.6 billion in the 2008 fourth quarter as the housing market continued to slump. The FDIC said its bank insurance fund stands to lose $10.7 billion on IndyMac.
OneWest, which has $1.55 billion in common equity injected by its new owners, will operate as a regional bank, focused on deposits and conforming and jumbo mortgage lending for its retail customers in Southern California. Over time the bank intends to expand its retail branch network beyond the 33 branches primarily located in the Los Angeles area. The bank said it doesn't plan to close any existing branches.
(Excerpt) Read more at news.yahoo.com ...
Being as Chuck was the head of the fundraising efforts for the dems last year, I bet he and the party got a pretty penny for his effort.
OneWest is connected to some pals of Odumbo!
I was going to ask if this was the bank that the Nazi Schumer torpedoed.
Ping!
Remember OneWest?
My mistake, I was thinking of Golden West.
Soros just put him self in a box, too bad it isn’t a pine box!
So the discount roughly covers their 20% exposure, meaning the government is really taking 100% of the losses?
chuck u schuma should be in jail.
~~"Only Yesterday: An Informal History of the 1920’s" by Fredrick Lewis Allen
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