Investors unite to buy remnants of IndyMac
WASHINGTON --- A seven-member group of investors has teamed up to buy the remnants of failed lender IndyMac Bank for $13.9 billion, federal regulators said Friday.
The Federal Deposit Insurance Corp. said a holding company led by Steven Mnuchin, the co-chief executive of private equity firm Dune Capital Management, agreed to buy IndyMac in a deal reached Wednesday and expected to close by the end of March.
The investors have formed a partnership, called IMB Management Holdings LP, that includes Dell Inc. founder Michael Dell's investment firm, MSD Capital.
Other investors in the partnership include five private equity firms or hedge funds: J.C. Flowers & Co.; Stone Point Capital; Paulson & Co.; a fund controlled by billionaire George Soros' Fund Management; and a fund controlled by Silar Advisors LP.
IndyMac has 33 bank branches in Southern California with about $6.5 billion in deposits, about half the company's total at the time of its failure. Other assets include a $157.7 billion loan servicing business and a reverse-mortgage company, known as Financial Freedom.
GMAC loses exclusive rights to finance autos
DETROIT --- GMAC LLC will no longer have exclusive rights to provide no- or low-interest loans to people who take advantage of General Motors financing incentives, as part of the complex deal that gave the troubled lender billions in federal aid.
The move could reduce the Detroit automaker's dependence on GMAC to provide financing and give consumers more options for loans.
GMAC, which provides GM dealer and customer financing in addition to home mortgage loans, disclosed the terms of the agreement in a regulatory filing Friday. The lender said the government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy.
In its filing with the U.S. Securities and Exchange Commission, GMAC said General Motors Corp. can now offer financing incentives such as zero-percent loans through other lenders. Some restrictions disappear in December 2010 and all of the restrictions will be gone three years later.
Spokesman John McDonald said GM doesn't plan to change its financing incentive agreements with GMAC.
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