IndyMac Sale Near: Deal To Sell Failed Bank To Private Equity Firms

IndyMac Bancorp, one of the largest banks to fail as a result of the subprime mortgage crisis, is close to being sold to a consortium of private equity and hedge fund firms in a complex deal partly financed by the federal government, people involved in the deal said.

The Federal Deposit Insurance Corporation, along with a team of former Lehman Brothers bankers who are now with Deutsche Bank and Barclays Capital, has been engaged in the sale process since federal regulators declared IndyMac insolvent in July and seized the company.

The deal is in the final stages of negotiations, which are private, and could be announced as early as Monday, these people said, though they cautioned that the talks could still fall apart.

If a deal is reached, it would still need approval from the federal Office of Thrift Supervision before it can be completed.

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