Non-bank bidders being allowed on IndyMac
The L.A. Times Money blog is reporting that the FDIC, which took over the failing Pasadena-based IndyMac bank during the summer, has allowed bidders that do not have a banking charter to bid on the bank:
The Federal Deposit Insurance Corp. said Wednesday that it would begin to allow bidders without a bank charter to take part in the auctions of failed banks. So I asked IndyMac spokesman Evan Wagner if the new rules applied to IndyMac. His e-mailed response:
Yes, the expanded bidder list does apply to IndyMac. Potential bidders that do not currently have a bank charter must go through the regulatory process to obtain approval for a charter and deposit insurance.
That sounded to me like the FDIC was expanding IndyMac's auction to invite new bidders in. But Wagner since has clarified that bidders without bank charters had already been allowed into the auction process. No additional bids are being taken, he said.
So who might the nonbank bidders for IndyMac be? No one is revealing their identities or for that matter those of bidders that already hold bank charters, just saying that there are competing bids and it may be possible to announce in December which parts of IndyMac go to whom -- and how much of the leftover portfolio of toxic loans may wind up stuck on the FDIC's books.
UNDER THE DOME
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