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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.