Tuesday, 24 May 2016
Last updated 16 min ago
Jan 5 2009 | 12:17pm ET
A group of hedge funds and private equity firms have struck a deal to buy a failed lender from the Federal Deposit Insurance Corp.
The rare purchase of a bank, IndyMac Bank, by alternative investment firms includes a promise by those investors to inject $1.3 billion in IndyMac, which failed this summer, forcing the government to take control of the bank.
The FDIC, which said the deal led by former Goldman Sachs executive Steven Mnuchin was the least costly option, will share the losses on a pool of the bank’s loans with IndyMac’s new owners.
Those new owners include hedge funds Paulson & Co. and a hedge fund controlled by billionaire George Soros. The team also features Mnuchin’s private-equity firm Dune capital Management, J.C. Flowers & Co., MSD Capital and Stone Point Capital.