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Sunday, Sep 24, 2023

Sale of IndyMac Bank Appears Imminent

ndyMac Bank, the California mortgage lender seized by U.S. regulators five months ago, will be sold by the Federal Deposit Insurance Corp. before the end of this year, said a person familiar with the matter.

The bank may be sold intact or split among multiple buyers, according to the person, who declined to be named because discussions aren’t public. Bids were due by Dec. 15. FDIC spokesman David Barr said today an announcement about IndyMac will be made by year-end. He declined to comment on a sale.

Regulators seized IndyMac in July after overdue mortgages left the lender short on cash and triggered a run on deposits. The FDIC said at the time it intended to sell the Pasadena-based bank within 90 days, preferably in one piece. Potential bidders may include U.S. Bancorp and PNC Financial Services Group Inc.

IndyMac, which had $32 billion in assets and $18 billion in deposits when it was seized, at the time ranked as the second-largest failure in FDIC history. The bank crumbled under the weight of huge losses on mortgages gone bad.

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Bloomberg News


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