Friday, March 20, 2009

FDIC Closes Sale of Indymac, Loses $10.7 billion

by Bill McBride on 3/20/2009 01:45:00 AM

From the FDIC: FDIC Closes Sale of Indymac Federal Bank, Pasadena, California

The Federal Deposit Insurance Corporation (FDIC) has completed the sale of IndyMac Federal Bank FSB, Pasadena, California, to OneWest Bank, FSB, a newly formed Pasadena, California-based federal savings ...

IndyMac Federal sustained losses of $2.6 billion in the fourth quarter 2008 due to deterioration in the real estate market. The total estimated loss to the Deposit Insurance Fund is $10.7 billion.
The original loss estimate was $4 to $8 billion, and that estimate was later increased to $8.9 billion. Now it is $10.7 billion.

Ouch.

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