The FDIC will be selling the failed Pasadena bank to an investment group for $13.9 billion. As part of the complicated deal, losses will be shared by the government and the buyers (the government to shell out the lion's share). No details on what the new owners will be doing, other than that they plan to inject about $1.3 billion of capital into the operations and operate it under a thrift charter. They say more will be announced late this month or in early February. The sale includes 33 branches, a reverse-mortgage unit and a $176 billion loan-servicing portfolio. Here are stories from the LAT and HousingWire.
Still unclear is how a dispute with Fannie Mae will be resolved. As has been reported, Fannie claims that it's owed around $1 billion in bum mortgages that it bought from IndyMac. From the WSJ:
Banks that sell loans to Fannie or its smaller rival, Freddie Mac, must make "representations and warranties" that those loans meet certain quality standards. If not, the lenders can be forced to buy the loans back. A spokesman for Fannie said the company is working with the FDIC in an effort to resolve the issue. "We are awaiting information from the FDIC," the spokesman said. The large amount of IndyMac loans that Fannie says are flawed is the latest indication of the failures in screening mortgages that have plagued Fannie, Freddie and many major lenders.