FDIC Agrees to Sell IndyMac to Investor Group

[Dover]

Washington Post Staff Writer
Saturday, January 3, 2009; Page D01

The federal government has agreed to sell the skeleton of IndyMac Bank, the aggressive California mortgage lender whose July failure portended the autumn crisis of the financial system, to a group of private investors.

It is the first failed bank in almost two decades that the Federal Deposit Insurance Corp. has sold to a buyer outside the banking industry, underscoring both the dearth of banks able to bid and the increased interest of wealthy investors in the ailing but historically lucrative industry.

The investing group, IMB HoldCo, is led by Steven Mnuchin, a former Goldman Sachs executive, and includes the veteran banking investor J. Christopher Flowers, computer maker Michael S. Dell and hedge fund manager John Paulson, who made billions betting on the very collapse of the mortgage market that killed IndyMac.

The sale of IndyMac has a total value to the government of about $13.9 billion. That is mostly the value of liabilities that the investors will take off the government's books, plus a cash payment for the balance....cont'd

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/02/AR2009010202228.html


Something really stinks about this. Are some companies deliberately being brought down in order to
buy them cheap...ie: 'consolidation' of wealth/power?

[specimenfred1984]

1. Sounds like a trustworthy bank run by ruthless speculators, lol

People will put their money in there too, full well knowing how corrupt it is hoping to game the system just like people did with Madoff. Soon after the inevitable collapse, you'll read lots of stories about "but we didn't know it was corrupt".