The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Reuters | The Indymac bill is paid..

NEW YORK Reuters – U.S. regulators are expected to announce a deal for the assets of failed mortgage lender IndyMac before the end of the year, a spokesman for the bank said on Wednesday.

The exact timing of an announcement and whether the company would be sold as a single entity or in pieces was not clear.

The deadline for final bids for IndyMacs assets was December 15, said IndyMac spokesman Evan Wagner.

The Federal Deposit Insurance Corp aims to sell IndyMac before the end of the year, FDIC spokesman David Barr said. The FDIC estimates IndyMacs failure cost the agency $8.9 billion.

The mortgage specialists IndyMac Bank unit was taken over by regulators after it failed on July 11 in one of the largest bank failures in U.S. history. At the time, it had $32 billion in assets and $19 billion in deposits.

When it failed, more than 130 FDIC employees swooped in on the California-based mortgage lender to prepare it to reopen under government management as IndyMac Federal Bank. Another 120 employees took part remotely via computer links.

via Regulators near deal for IndyMac | Deals | Reuters .


This entry was posted on December 25, 2008 by in Financial Markets, Meltdown, Uncategorized, US and tagged , , , .


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