Paulson-Backed CIT-IndyMac Merger Reported, Denied

Sep 29 2009 | 2:03pm ET

Those celebrating the impending merger between CIT Group and IndyMac Bank, spearheaded by hedge fund guru John Paulson, might want to put away the bubbly.

Just hours after the New York Post reported that the Paulson & Co. chief was mulling a plan to merge the troubled lender with the bank he bought as part of a consortium of hedge funds and private equity firms, the anonymous denials started piling up fast and furious.

“There is absolutely no relation between IndyMac and CIT,” one unnamed source told Reuters. “Linking the two companies is just wrong.”

Business Insider’s source called the alleged talks “pure nonsense.”

The Post, citing its own unnamed sources, called the potential merger between CIT, which remains in hot water despite a multi-billion dollar hedge fund-backed bailout, and IndyMac, which is now called OneWest Bank, one of several options for saving CIT. The tabloid did say that no formal discussions between the two institutions had occurred, but that the plan had been kicked around by some creditors, including Paulson.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?