The Federal Deposit Insurance Corp. (FDIC) has completed its sale of IndyMac's banking operations and assets to OneWest Bank Group, a thrift holding company owned by a consortium of private equity investors and hedge funds, which includes, J.C. Flowers, Paulson & Company, Stone Point Capital, George Soros and Michael Dell. OneWest acquired $20.7 billion of the bank's loans and other assets for $16 billion, as well as all of the bank's $6.4 billion of deposits. The investors also injected $1.55 billion of common equity to make sure the bank is well capitalized, with a tangible common equity ratio of more than 9%. The FDIC provided $9 billion of financing in support of the deal and will share in loan losses beyond the first 20%.
IndyMac was renamed OneWest Bank upon the closing of the transaction. Steven Mnuchin will be the chairman and CEO of the bank holding company that owns OneWest, with Terry Laughlin becoming OneWest's CEO. They hope to double the size of the bank over the next five years through acquisitive and organic growth and will continue to operate IndyMac's national loan servicing business and reverse mortgage business. The bank will specialize in jumbo loans in the Southern California area, which it plans to keep on its balance sheet instead of selling them. The Indymac deal is the largest private equity acquisition of a bank in the United States.