FDIC Sells IndyMac, Will Share Losses

The FDIC's work on IndyMac, which it seized in July, has not been in vain! Today it announced that it will sell the troubled lender to IMB HoldCo LLC, a consortium including honchos of Paulson & Co, Dune Capital, and other financial companies, and buyout specialist J. Christopher Flowers. Former Merrill Lynch CEO Terry Laughlin will run the joint. The Feds will get about $13.9 billion in the deal, but will share losses on New IndyMac's qualifying loans, "assuming the first 20% of losses after which the FDIC will share losses 80/20 for the next 10% of losses and 95/5 thereafter." FDIC estimates this will cost You the Taxpayer about $9 billion, although who knows.