On January 2, 2009, the FDIC announced that it had signed a letter of intent to sell IndyMac Federal Bank, FSB (the “Bank”) to a newly formed thrift holding company, IMB HoldCo LLC (“IMB HoldCo”). IMB HoldCo is owned by a consortium of private equity investors and is controlled by IMB Management Holdings LP (“IMB Management”). According to the Fact Sheet released by the FDIC with the announcement, the investors include Dune Capital, LLC, J.C. Flowers & Co., Paulson & Co., MSD Capital, L.P., Stone Point Capital, SSP Offshore LLC and SILAR MCF-1 LLC. The Fact Sheet also reports that the sale price is approximately $13.9 billion.

The Fact Sheet provides that, as a condition to the sale, the FDIC has agreed to share losses on a portfolio of qualifying loans and to continue to provide secured financing on transferred assets to the Bank. IMB HoldCo has agreed to capitalize the Bank with approximately $1.3 billion in cash and to continue the FDIC’s existing loan modification program.

Also on January 2, 2009, the OTS announced that it has granted “preliminary clearance” to “the successful bidders” for the Bank and is considering their application to operate the Bank as a federal savings association. The proposed focus of the Bank will be on home mortgage lending and mortgage loan servicing. The OTS expects to formally act on the application later this month.

Closing is anticipated during the first quarter of 2009. The FDIC expects that the depositors and employees of the Bank “will benefit from a renewed and recapitalized savings bank and holding company.”