FDIC's board of directors approved the agreement to sell IndyMac Federal to the investor group
The Federal Deposit Insurance Corporation (FDIC’s) has signed a letter of intent to sell the banking operations of IndyMac Federal Bank to a thrift holding company controlled by IMB Management Holdings, a limited partnership.
The Federal Deposit Insurance Corporation’s board of directors approved the agreement to sell IndyMac Federal to the investor group.
Prior to the IndyMac failure on July 11, 2008, the bank relied on higher cost, less stable, brokered deposits, as well as secured borrowings, to fund its operations and focused on stated income and other underwritten loans in areas with escalating home prices, particularly in California and Florida. Since the FDIC has operated the institution, it has restructured funding to focus on stable core deposits and on improving the value of the loans, said FDIC.
IMB Management Holdings 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 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 2009.
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.