Failed IndyMac to be sold

Staff Reporter Monday, 5 Jan 2009 1 minute read

IndyMac Bank – one of the biggest banking collapses in history – has secured new ownership from a team of high profile investors.

Up to US$1.3 billion (A$1.8 billion) will be invested in the bank by a team including private equity mogul Christopher Flowers and computer tycoon Michael Dell.

The group and the US government have agreed to share the bank’s billion dollar losses, with the Federal Deposit Insurance Corporation (FDIC) expecting to lose up to US$9.4 billion (A$13.2 billion).

"The current economic climate is challenging for selling assets, but this agreement achieves the goals that were set out by the chairman and board when the FDIC was named conservator of IndyMac in July," said FDIC deputy director James Wigand on Friday.

IndyMac was one of more than 20 US financial institutions to fail over the course of 2008 after going bust in July.

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