NEW YORK (CNNMoney.com) -- The Federal Deposit Insurance Corp. announced Friday that it had struck a deal to sell failed mortgage lender IndyMac to a group of private investment firms for $13.9 billion.
The buyers include buyout specialist J.C. Flowers & Co. and hedge fund Paulson & Co., which focuses on distressed assets, as well as the private investment firm managing computer mogul Michael Dell's fortune and a fund managed by financier George Soros.
The Pasadena, Calif.-based bank will be controlled by IMB Management Holdings, led by Steven Mnuchin, who is chair and co-chief executive of Dune Capital Management. Terry Laughlin, who headed Merrill Lynch Bank & Trust, will serve as chief executive of IndyMac.
The investors could not be reached for comment.
IndyMac's failure, one of the largest in U.S. history, will cost the FDIC between $8.5 billion and $9.4 billion, in line with the agency's previous estimates. The transaction is expected to close sometime in the next three months.
The bank, which specialized in Alt-A loans made to borrowers who did not need to verify their income or assets, collapsed in July after defaults skyrocketed and depositors made a run on the bank.
The buyers will inject $1.3 billion in capital into the bank. The FDIC has also agreed to share the losses on a portfolio of loans, mainly mortgages, with IMB Management. The buyers will take responsibility for the first 20% of losses, and the FDIC will cover the majority of additional losses.
"We have assembled a group of experienced private investors in financial services to acquire the former IndyMac and operate it under new management with extensive banking experience," said Mnuchin. "At closing, we will inject significant private capital into IndyMac so that it can once again effectively serve its customers and communities."
Source : http://money.cnn.com
Posts
0 comments:
Post a Comment