How The FDIC Raped The American Taxpayer (UPDATED)

(Editor’s Note: The Video that was here previously has been removed by the user that published it on YouTube. Sorry Folks.)

WARNING: Put down all liquids, wrap your head with duct tape, and get your barf bucket close.

Watching this video is beyond disturbing because of the explanation of what happened to IndyMac and their mortgages.  The financial rape we (and our children) are currently enduring comes very close to the treasonous policy that allows our intelligence services to assassinate Americans they suspect of terrorism without due process.

Watch the entire video because it will explain in detail the money trail and why so few mortgage modifications are being made.  No wonder they would not allow the banking systems to collapse, there wouldn’t be any bad paper to make an outrageous profit off of.

Press Releases

FDIC Closes Sale of Indymac Federal Bank, Pasadena, California

FOR IMMEDIATE RELEASE
March 19, 2009
Media Contact:
David Barr
Office: (202) 898-6992
Cell: (703) 622-4790
Email: dbarr@fdic.gov

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 bank organized by IMB HoldCo LLC. OneWest will assume all deposits of IndyMac Federal. IMB HoldCo signed a letter of intent with the FDIC on December 31, 2008, to purchase IndyMac Federal.

The 33 branches of IndyMac Federal will reopen as branches of OneWest tomorrow. Depositors of IndyMac Federal will automatically become depositors of OneWest. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of January 31, 2009, IndyMac Federal had total assets of $23.5 billion and total deposits of $6.4 billion. OneWest has agreed to purchase all deposits and approximately $20.7 billion in assets at a discount of $4.7 billion. The FDIC will retain the remaining assets for later disposition.

FDIC and OneWest have entered into a loss share transaction on the single family residential portfolio. Under terms of the loss share agreement, OneWest will continue the FDIC’s existing loan modification program.

Customers who have questions about the transaction can call the FDIC toll-free at 866-806-5919. The phone number will be operational this evening until 9:00 p.m. Pacific Time; on Saturday from 9:00 a.m. to 6:00 p.m. Pacific Time; on Sunday from noon until 6:00 p.m. Pacific Time; and thereafter from 9:00 a.m. to 5:00 p.m. Pacific Time. Interested parties can also visit the FDIC’s website at http://www.fdic.gov/bank/individual/failed/IndyMac.html.

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. No further payments on receivership claims for uninsured funds from former IndyMac Bank, F.S.B. will be distributed as a result of this transaction.

Consortium of private equity firms acquires IndyMac Federal Bank from Federal Deposit Insurance Corporation

Publication: Financial Deals Tracker
Date: Friday, March 20 2009

The Federal Deposit Insurance Corporation (FDIC), an independent government agency, has sold IndyMac Federal Bank, FSB, a provider of banking and home lending services, to OneWest Bank, FSB, a newly formed federal savings bank organized by IMB HoldCo LLC, a thrift holding company controlled by IMB Management Holdings LP.

IMB HoldCo is owned by a consortium of private equity investors led by Steven T. Mnuchin, co-chief executive of private equity firm Dune Capital Management LP, and other investors in the consortium include J.C. Flowers & Co., LLC, Paulson & Co., MSD Capital, L.P., Stone Point Capital LLC, SSP Offshore LLC, a fund managed by Soros Fund Management LLC, and SILAR MCF-I LLC, a fund controlled by Silar Advisors, LP. All the entities are based in the US.As of January 31, 2009, IndyMac Federal Bank had total assets of $23,500 million and total deposits of $6,400 million. OneWest has agreed to purchase all deposits and approximately $20,700 million in assets at a discount of $4,700 million. The FDIC will retain the remaining assets for later disposition.Announcement (December 31, 2008):FDIC has entered into a letter of intent to sell IndyMac Federal Bank to IMB HoldCo.Following the completion, IMB HoldCo will capitalize IndyMac Federal Bank with approximately $1,300 million in cash. The transaction is expected to close in the first quarter of 2009.Rumor (December 28, 2008):According to Bloomberg, the New York Times reported that a consortium of private equity and hedge fund firms is in negotiations to acquire IndyMac Federal Bank.The consortium includes investment firms J.C. Flowers and Dune Capital Management LP, and the hedge fund manager Paulson & Co., Inc.The acquisition would include IndyMac’s 33 branches, reverse- mortgage unit and its $176,000 million loan-servicing portfolio.Barclays Capital, Inc. and Deutsche Bank Securities, Inc. are acting as financial advisors to the FDIC. Merrill Lynch & Co., Inc. is acting as financial advisor, while Weiner Brodsky Sidman Kider PC and Cleary Gottlieb Steen & Hamilton LLP are acting as legal advisors to the consortium. Sullivan & Cromwell LLP is acting as legal advisor to J.C. Flowers and SSP Offshore. Simpson Thacher & Bartlett LLP is acting as legal advisor to Stone Point Capital, MSD Capital, and J.C. Flowers. Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor to Paulson & Co.

Deal Value (US$ Million)13900Deal TypePrivate EquitySub-CategoryInstitutional Buy-out (IBO)Deal StatusCompleted: 2009-03-19

Deal ParticipantsTarget (Company)IndyMac Federal Bank, FSB.Vendor (Company)Federal Deposit Insurance Corporation

Dune Capital Management LP – Steven T. Mnuchin

Paulson Ranks as Bank of America’s 4th-Largest Holder (Update1) – John Paulson

(I am sure LM readers recognize ALOT of those names as people we gave the special wave to over the course of the last 18 months.)

Jiminy Freakin’ Cricket!  Am I going to have to start working on the Muckety Map From Hell of Who Owns What?

(H/T Kathy and ThinkBigWorkSmall.  Please send this video far and wide…)

7 thoughts on “How The FDIC Raped The American Taxpayer (UPDATED)

  1. The FDIC is in red, with a $500 billion credit line from Congress.

    Wall Street paid out $145 billion in total compensation in 2009.

    Connect the dots yet?

    “TO ESCAPE FEDERAL INTERFERENCE ON PAY AND OTHER MATTERS, Goldman Sachs and other big financial firms are eagerly seeking to repay the government’s TARP equity investments.

    But none of them are talking about leaving a Federal Deposit Insurance Corp. bond-guarantee program that benefits them much more. Goldman (ticker: GS) has issued $29 billion of low-cost debt through this FDIC program; Bank of America (BAC), $44 billion; and JPMorgan (JPM), $38 billion. In total, about $340 billion of debt has been sold under the six-month-old arrangement, called the FDIC Temporary Liquidity Guarantee Program (TLGP).”
    http://online.barrons.com/article/SB124001886675331247.html#articleTabs_panel_article%3D1

    *imho*

  2. If they could, they’d destroy the entire nation as quickly as they could. Forgive me, but I’m going to disappear. I have an invitation to live in John Galt’s secret Atlantis in Colorado.

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