The FDIC announced on Friday, January 2, 2009, that for the first time since the early 1990’s, it turned to a consortium of private equity investors to resolve the failure of a bank when it signed a letter of intent with IMB Management Holdings, LLP, to acquire IndyMac Federal Bank, FSB. The transaction is described by the FDIC at:

http://www.fdic.gov/news/news/press/2009/pr09001.html.

A fact sheet on the transaction is attached to the FDIC’s announcement on its website.  

While private equity transactions in the highly regulated business of banking include very complex issues, we believe that the need for capital will continue to generate similar transactions.