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Two Private Equity Firms & A Hedge Fund Buying IndyMac Together?

image On Friday the website Mortgage Lender Implode reported that IndyMac was being sold to Dune Capital Management.  Today, the NY Times is reporting that the failed bank is being sold to a consortium of private equity and hedge fund firms… including Dune Capital Management.

According to “people” who spoke with NY Times, the buyers are Dune Capital Management, J.C. Flowers & Company, and hedge fund Paulson & Company.  If true, the deal would be one of the more unusual because it’s one of the first transactions involving unregulated private equity firms acquiring a bank holding company.

In September, the Federal Reserve eased regulations to allow private equity firms and hedge funds to acquire portions of bank holding companies without being subject to undue regulation. Previously, a private equity firm that held more than 24.9 percent of a bank was required to register as a bank holding company and it restricts the investor’s ability to make investments outside of the banking industry.

Lets hope the FDIC will announce the “winners” on Monday.

IndyMac Is Set to Be Sold to Private Investors (NY Times)