WASHINGTON — The Federal Deposit Insurance Corp. is expected to announce the sale of IndyMac Bancorp. soon, possibly as early as Wednesday, sources said Tuesday.
The agency has run the $32 billion-asset Pasadena, Calif., thrift since it failed July 11. It had planned to sell the company within 90 days, but is now shooting for wrapping up the deal by yearend.
A successful sale of IndyMac is important because it could lower the cost of the thrift’s collapse. The agency has estimated IndyMac’s failure will cost $8.9 billion to the Deposit Insurance Fund.
It is unclear whether the agency is selling IndyMac as whole or in pieces, but agency officials have said in the past they were hoping for a whole sale.
John Bovenzi, the FDIC’s chief operating officer, who took over as chief executive of IndyMac in its receivership, told American Banker after the seizure that he expected to be able to sell the bank at more than a fire-sale price.
"The loans may not get full value, but they're still going to get value," he said. "Some parts of the portfolio may not get 100 cents on the dollar, but we'll see the best way to market and try to get that value back.”
It is also unclear what conditions may be placed on the successful bidder or bidders. The FDIC has used IndyMac as a testing ground to engage in systematic loan modifications – and has recommended that other financial institutions follow their methods.
The agency has committed to helping 30,000 borrowers with loans held or serviced by IndyMac.