The Federal Deposit Insurance Corp. announced Friday it had struck a deal to sell failed mortgage lender IndyMac to a group of private investment firms for $13.9 billion, CNN reported.
The buyers, operating as a thrift holding company controlled by IMB Management Holdings, include the investment advisory firms of J.C. Flowers & Co. and Paulson & Co., as well as the private investment firm managing computer mogul Michael Dell's fortune. Also involved are the financial funds Stone Point Capital, SSP Offshore and Silar MCF-I.
IMB Management Holdings will be led by Steven Mnuchin, who is chair and co-chief executive of Dune Capital Management. Terry Laughlin, who headed Merrill Lynch Bank & Trust, will serve as chief executive of IndyMac.
IndyMac's failure, one of the largest in U.S. history, will cost the FDIC between $8.5 billion and $9.4 billion, in line with previous estimates.
The transaction is expected to close in late January or early February.
The FDIC had hoped to announce the sale by year's end, but the deal was held up by Fannie Mae. The mortgage finance giant said it was negotiating with the FDIC to settle a claim it has about home loans IndyMac sold to Fannie. According to reports, Fannie wants IndyMac to buy back about $1 billion of mortgages that failed to meet Fannie's standards.
Of the 25 banks that have failed so far this year, IndyMac is the only one the FDIC could not immediately sell. Last month, the agency expanded the pool of bidders for failed banks by allowing those without bank charters to bid for the institutions. Bidders would need to obtain charters before the deal closes.