The Federal Deposit Insurance Corp. (FDIC) has signed a letter of intent to sell the banking operations of IndyMac Federal Bank FSB, based in Pasadena, Calif., to a thrift holding company controlled by IMB Management Holdings LP, a limited partnership. The FDIC's board of directors approved the agreement to sell IndyMac Federal to the investor group.
‘The current economic climate is challenging for selling assets, but this agreement achieves the goals that were set out by the chairman and board when the FDIC was named conservator of IndyMac in July,’ says FDIC Deputy Director James Wigand, the lead negotiator for the transaction. ‘Unfortunately, as expected, IndyMac's liability structure, combined with aggressive real estate lending in California, had a significant impact on losses.’
IMB Management Holdings LP and the investor group will inject a substantial amount of capital into a newly formed thrift holding company, which will own and operate IndyMac Federal. IMB Management Holdings LP has agreed to bring in an experienced senior management team to run the day-to-day operations of the thrift.
The transaction is expected to close in late January or early February, at which time full details of the agreement will be provided, the FDIC says. It is estimated that the cost to the FDIC for resolving IndyMac Bank will be between $8.5 billion and $9.4 billion.
SOURCE: Federal Deposit Insurance Corp.