IndyMac Bank sold to IMB Management Holdings

The Federal Deposit Insurance Corp., which has run IndyMac since its collapse, said the bank would be purchased by IMB Management Holdings, a New York-based partnership led by buyout expert J. Christopher Flowers, hedge-fund operator John Paulson and Steven Mnuchin, chairman of private equity firm Dune Capital Management.

IMB Management Holdings and the investor group will inject about $1.3 billion in new capital into the emerging bank and form a new holding company that will own and operate it under a thrift charter. What is being called New IndyMac also will bring in "an experienced senior management team to run the day-to-day operations of the thrift," the FDIC said in a statement.

Under the complex deal, the buyers will pay the FDIC about $13.9 billion and will share losses with the FDIC. The bank will assume the first 20% of losses, after which the FDIC would absorb the lion's share of losses.

There was no announcement of the operational plans the private investors have in store for IndyMac. The FDIC said full details of the agreement would be withheld until the deal's expected close in late January or early February.

The agency said IndyMac's cost to the federal deposit insurance fund would be $8.5 billion to $9.4 billion, in line with previous loss estimates of $8.9 billion.

Uninsured IndyMac depositors will have to wait to see how much of their losses they may recover, the FDIC said. The uninsured depositors have already been repaid 50% of the $541 million in uninsured funds that the FDIC determined was held in IndyMac accounts.

FDIC officials also said the agency's program to restructure IndyMac mortgages so troubled borrowers can pay less and avert foreclosures is expected to continue.

IndyMac in 2007 was among the 10 largest U.S. mortgage lenders and customer-service companies, with about 10,000 employees. It currently employs about 2,000, including roughly 300 in its 33 branches and several hundred each in its administrative operations and a reverse-mortgage business that allows older people to tap built-up equity in their homes.