Feds Sell Off Failed IndyMac For $13.9B

Remnants Of Bank Seized By Regulators Last Summer Are Sold To Investor Group

(AP)  Federal regulators say a group of investors has teamed up to buy the remnants of failed lender IndyMac Bank for $13.9 billion.

The Federal Deposit Insurance Corp. said Friday that a holding company led by Steven Mnuchin, co-chief executive of private equity firm Dune Capital Management, agreed to buy IndyMac.

The investors have formed a seven-member consortium that includes Dell Inc. founder Michael Dell's investment firm.

Pasadena, California-based IndyMac has been run by the FDIC under the name IndyMac Federal Bank. It failed last July in the second-largest U.S. bank failure of 2008.

[martin9p2]

Did the FDIC earn a "profit" from the transaction? I think they should have received a handling fee of at least $1B.

[culturechang]

Yes, the article was remiss in telling us how much the federal govt lost on this deal.

[ronsonit]

Cute, sold already... Just who are these investor''s? The former CEO maybe? What assets went into this deal to disappear into somebody''s well connected pocket?

[lovegetpeace]

Good job!

Capitalism New World Dictionary Definition: Privatize Profit and Socialize Loses.

[McHineguy]

Good job!

Capitalism New World Dictionary Definition: Privatize Profit and Socialize Loses.


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Posted by lovegetpeace at 05:41 PM : Jan 02, 2009

The "poor" have done it for years. now the rich have figured out how. The sooner we get our government out of managing finances, the sooner they will become "fair" again. Finacnes can never be totally fair. But when the government is involved they are nearly totally unfair.

[McHineguy]

Seems like the taxpayers bought it but have nothing to show for it.


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Posted by kevinkkloste at 05:07 PM : Jan 02, 2009

Nope, taxpayers never owned this one. It went into bankruptcy. Taxpayers MAY have paid some people their savings when there was a "run" on the bank last Fall. But this news is the normal next step in a bankruptcy process.

[perk235]

Posted by lovegetpeace at 05:41 PM : Jan 02, 2009

The "poor" have done it for years. now the rich have figured out how.
Posted by machineguy at 05:58 PM : Jan 02, 2009
---------------
Just too bad the poor didn''t figure out how to get million dollar golden parachutes!

The government should reinstate the Glass/Steagall Act from 1934 that was obliterated by Phil Gram in the Gram/Leach/Bliley Act in 1999 that deregulated financial institutions. Phil Gram was also a co-sponsor Commodities Modernization Act, where derivatives were deregulated.

[geneonlbk]

In America we sell injustice to the rich and force it on the poor.

[gce65]

CNN: NO mention in your mini story if the $13.9B was a profit or a loss...and who picked up the difference or made a profit.

Basic news reporting that people might want to know.

[whitemale08]

Well folks, it''s a brand new year and Barrack Obama will take the oath of office in less then 20 days.

Boy does he have a mess to clean up!

We will have to be patient because it will take reality to force Obama into take the Federal Reserve into bankruptcy but he will.

[tominswmich]

Your job needs to be telling what the government won''t tell us. How much did this transaction cost us?

[kuei12]

And what did the share holders get out of this deal? RAPED! Just like wamu and Lehman. For a government that says they want you to invest in the stock market they sure are going about things backwards. Semms the government has got this bank robbery thing down pat. Bush and his buddies are walking away with billions of americans money and americans are too stupid to put an end to it. The FDIC seizes banks and the sells them in single bid auctions (haliburton style) and walks away with billions in profits. America has come to an end. If you invest in the stock market YOU LOSE.

[jsutaguy]

You''ve really got to read this article by the Washington Post. http://tinyurl.com/6emukq

This top-rated piece of investigative reporting shows that Wall Street took BILLIONS out of each of our pockets by cornering the Oil markets in 2008, controlling 81 percent of all oil contracts in the world. They plan to do the same in 2009. This story was ignored by CBS, NBC, ABC, FOX, CNN.

Cut and paste this and pass it on.

http://tinyurl.com/6emukq

As the article points out, these same Wall Street firms plan to do the same thing to the price of everything we eat or drink, using the same cheap money they are getting from our treasury, in 2009.

Why are we paying to keep these firms in business?

Why are our taxes being used to keep them operating?

They aren''t lending money to real businesses, they aren''t helping our economy, they simply aren''t necessary for America...they are only used by the very richest parasites who are destroying our country and dictating its policies by buying out our government. Wall Street has clearly taken control of the CFTC, which is the Federal Agency that is paid to prevent speculators from cornering markets and illegally driving up prices. The CFTC, prior to this Washington Post report, laughably said that Gasoline prices were simply %u201Csupply and demand%u201D. This is simply a lie.

[irmcvet971]

Oh come on now! Don''t Y''all want some more of the Republican''s "Trickle Down" with "Less Government"? We all know these banks are very good at policing themselves don''t we? ROFLMAO

[irmcvet971]

Oh, that''''s right. The politicians on both sides need their families to be set up with gulf stream jets, yachts, a home in every state, and enough cash and wealth to be SET UP FOR ETERNITY!

Posted by corey2444 at 02:08 AM : Jan 03, 2009

What''s with you fascist?? EVERYONE, even my 6 year old GRANDSON knows who and what is behind all this. Let''s stop with the dumping on those who were NOT behind the Financial Meltdown. IF you doubt who was behind it, WHO pushed, no, attacked anyone who dared oppose De-Regulation, go back and pull up the Fascist Republican''s Propaganda for the elections... from 2000 on it was all about giving away our surplus AND De-regulating EVERY business in our nation. Sieg Heil Y''all.

[unlresources]

IndyMac had $32 billion in assets when it was confiscated or bailed out by the government. Now after the bailout and fire sale the government sold it for $13.9 billion. In business don''t you try to make a profit? Oh, silly me.....the government has many tax paying serfs out there to fill the till for another bailout for those that don''t deserve it. Besides it''s just the taxpayers money and all they expect is a welfare state to keep them reliant on the government. Just further proof that everything the government touches goes to ***. What''s happening to America?

[zerozerosiet]

The public would appreciate the efforts of CBS to report on the total cost after the recent sale of IndyMac. What is the total cost to the taxpayers? Was this another sweetheart deal for rewarding the rich paid for by the average Joe Six Pack taxpayer? Was the sale the result of public bidding or another corporate welfare program for a favorite campaign contributor? This gives me an idea how to make $1 million. I think%2

[zerozerosiet]

Will CBS report on the total IndyMac Diaster? Another sweetheart deal rewarding the rich paid for by the average taxpayer? Was the sale held by public bidding or another corporate welfare program for a favorite campaign contributor? I have an idea to make $1 Mil. I will write a best selling book: How to start a bank pay myself $25. Million annual salary and after 10 years, go to the Feds for a bailout. Let''s see, 10 years @ $25. Million per year. The will be: "How to make $100. Million in 10 years without buying any stock nor buying any real estate." I%u2019ve got my own get-rich-scheme!!!! If I quit my job and write full time, I will have the book ready by Memorial Day. Advance orders @ $5.00 plus $95. for S & H will be accepted after Mar 1, 2009.Each Book will be numbered First orders postmarked will receive the lowest numbered books.The book might become a great EBAY seller. We have a government of the wealthy, by the wealthy and for the wealthy. If I can sell 10,000 books I will become a millionaire too. If I only sell 9,999 books or less, then I will go the federal govt. for a bailout for my failing book business. One way or another, the rich get richer. Then I can afford to make a large donation to the reelection campaign of Governor Blagojevich.I have only one problem. I can not afford to write the book. I just lost my job at an auto dealership that went out of business. Perhaps I can get a Government Loan to write the book? I need a personal bailout. HELP HELP

[zerozerosiet]

The public would appreciate the efforts of CBS to report on the total cost after the recent sale of IndyMac. What is the total cost to the taxpayers? Was this another sweetheart deal for rewarding the RICH paid for by the average Joe Six Pack Taxpayers? Was the sale the result of public bidding or another corporate welfare program? Got an idea. How to make $1 mil. I will write a best selling book.
How to start a bank, pay myself $25. Mil annual salary and after 10 years, go to the Feds for a bailout. Let''s see, 10 years @ $25. Million per year. The title might be: "How to make $100. Mil in 10 years without buying stock or real estate." If I quit my job and write full time, I think I will have the book ready by Memorial Day. Orders @ $5.00 plus $95. S & H will be accepted after March 1, 2009. Each Book will be numbered. First orders postmarked get the lowest numbered books. Sure to be agreat EBAY seller.
We have a government of the wealthy, by the wealthy and for the wealthy. If I can sell 10,000 books I will become a millionaire too. If I only sell 9,999 books or less, I will go the federal government for a bailout for my failing book business. One way or another, the rich get richer. I want a small piece of the action. Then I''ll donate to Gov. Blagojevich.

[payasyougo]

$32B - $13.9B means the taxpayer lost $18.1B on this deal.

And they are just getting started.

So why is nobody in jail yet?

And why were the supporters of the $850B "bailout" fiasco not voted out of office?

America, you are getting the government you voted for.

[lochlan-2009]

"Federal regulators say a group of investors has teamed up to buy the remnants of failed lender IndyMac Bank for $13.9 billion"

There is no doubt that, these investors are the very same people who defrauded the markets and got the government bail out cash. They take, then take, then take again, no one can stop these criminals, and those who can are a part of the scam. America is corrupt to the core, a bad apple.