Hedge Fund, P.E.-Backed Bank Buys Another Failed Bank

Feb 23 2010 | 7:19am ET

A bank owned by a consortium of hedge and private equity funds has snapped up another failed bank.

OneWest Bank, itself the former failed lender IndyMac, has agreed to buy the deposits and most of the assets of La Jolla Bank, a California bank with $2.8 billion in deposits. It is the second failed bank bought by OneWest from the Office of Thrift Supervision and Federal Deposit Insurance Corp., following its deal for First Federal Bank in December.

As part of the agreement for La Jolla, the FDIC and OneWest will share losses of $3.31 billion on the failed bank. The FDIC’s Deposit Insurance Fund is expected to take an $882.3 million hit on the deal.

OneWest is owned by Paulson & Co., Soros Fund Management, JC Flowers & Co. and Dune Capital Management, among others.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note