US Labor Group Raises Concern About IndyMac Sale
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- A major U.S. labor group raised concerns on Wednesday about the federal government's sale of IndyMac Federal Bank to a group of private equity investors, suggesting that the firms could use the bank as their own "in-house" lender.
"This sweetheart deal with private equity firms may put taxpayers at an even greater risk than the old IndyMac posed," said Stephen Lerner, director of the Service Employees International Union's, or SEIU's, private equity project.
The Federal Deposit Insurance Corp. announced Jan. 2 it had signed a letter of intent to sell failed California thrift IndyMac to a holding company owned by a group of hedge fund and private equity firms that includes J.C. Flowers & Co. and Paulson & Co.
The consortium, as part of the deal, agreed to inject roughly $1.3 billion of capital into what was once IndyMac. The cost of resolving IndyMac, which failed last summer, is expected to cost the FDIC's deposit insurance fund between $8.5 and $9.4 billion.
The SEIU questioned whether the FDIC would share any gains if the new thrift is successful, as well as whether there would be limits on the new firm's ability to lend to any of the private investors.
-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com
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Publié le 07 janvier 2009 Copyright © 2009 Dowjones
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