The FDIC’s work on IndyMac, which it seized in July, has not been in vain! Today it announced that it will sell the troubled lender to IMB HoldCo LLC, a consortium including honchos of Paulson & Co, Dune Capital, and other financial companies, and buyout specialist J. Christopher Flowers. Former Merrill Lynch CEO Terry Laughlin will run the joint. The Feds will get about $13.9 billion in the deal, but will share losses on New IndyMac’s qualifying loans, “assuming the first 20% of losses after which the FDIC will share losses 80/20 for the next 10% of losses and 95/5 thereafter.” FDIC estimates this will cost You the Taxpayer about $9 billion, although who knows.
This article from the Village Voice Archive was posted on January 2, 2009