Dune Capital Is Potential Buyer for IndyMac
New York private-equity firm Dune Capital Management L.P. has emerged as a potential buyer of the failed IndyMac Bank, according to people familiar with the situation.
An announcement could come as soon as Monday.
The new owner is expected to have a federal thrift charter, someone familiar with the matter said.
Founded in 2004, Dune is led by two former Goldman Sachs & Co. executives, Steve Mnuchin and Dan Neidich. Its general counsel declined comment Sunday and referred inquiries to the Federal Deposit Insurance Corp., which seized control of IndyMac in July and has been seeking a buyer ever since.
The FDIC, which also declined comment Sunday, has estimated that its deposit-insurance fund would lose $8.9 billion as a result of the failure, but the final figure would depend on how much the regulator can receive for IndyMac’s assets.
IndyMac Bank had roughly $32 billion in assets when it failed, which made it one of the country’s largest thrifts. If the deal is completed, the new owners would gain control of an extensive branch network on the West coast. The deal — expected to be for roughly $14 billion — could also include a loss-sharing agreement that would have the FDIC backstop losses on loans beyond a certain level, according to one person familiar with the discussions.
IndyMac’s failure in July marked a low point for government officials during the financial crisis, as media coverage of long lines outside the California branches sparked panic among customers across the country. Of the 25 banks that have failed so far this year, Indymac is the only one the FDIC has been unable to sell.
FDIC officials had hoped to complete a sale by October.
Dune’s pursuit of IndyMac illustrates the renewed interest in the nation’s troubled banks as regulators consider more charters for nonbank investors. On Nov. 17, the Office of the Comptroller of the Currency granted an 18-month “shelf” national bank charter to a group led by Texas billionaire and 1980s S&L rescuer Gerald Ford, giving him preliminary approval to bid on any failed banks during that period via Ford Group Bank.
The Office of the Comptroller of the Currency also approved an application from private-equity investor Christopher Flowers to buy a small Missouri bank called First National Bank of Cainesville several months ago, which could make it easier for Mr. Flowers to acquire other troubled banks.
Several insurance companies have also applied to become thrift-holding companies to buy other banks and apply for federal rescue money.
source : The Wall Street Journal
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