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IndyMac Bank Sold to High-Profile Investors
1/6/2009
A group of private-equity investors including billionaire George Soros and Dell Inc. founder Michael Dell have agreed to purchase failed mortgage lender IndyMac Bank for $13.9 billion.
The investors have formed a partnership, IMB Management Holdings LP. The group plans to invest $1.3 billion in new capital into IndyMac and continue to operate the Pasadena, Calif.-based property, the Federal Deposit Insurance Corp. said last week.
According to the terms of the agreement with the FDIC, the new owners will take on the first 20 percent of the bank’s loan losses with the FDIC accepting the majority thereafter, an expected $8.5 billion to $9.4 billion.
In return, the bank will continue the home-loan modification program launched by FDIC Chairman Sheila Bair.
Source: The Associated Press, Alan Zibel (01/03/2009)
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