J.C. Flowers & Co., Dune Capital Management, and the hedge fund Paulson & Co. are set to buy the assets of the failed mortgage lender IndyMac, according to unnamed sources in multiple news reports.
According to the reports, the trio would buy the bank and its 33 branches, reverse-mortgage unit, and a $176 billion loan-servicing portfolio.
No one from the Federal Deposit Insurance Corp. (FDIC), who seized IndyMac after failed in July, IndyMac itself, or the potential buyers commented on the proposed deal, but last week, IndyMac spokesman Evan Wagner said a deal could be expected by the end of the year.
The FDIC estimated that IndyMac’s failure cost taxpayers $8.9 billion. Barclays Capital and Deutsche Bank are advising the FDIC on the sale.