Isn’t IndyMac the bank that Sheila Bair is using to launch her populist political career?
If that’s the bank, then clearly the taxpayer will be suckered in for vast amounts so she can win political support. Whether the bank was held by the FDIC or “sold off” whilst almost all the losses continue to be covered by the taxpayer makes little difference. At the end of the day, the taxpayer loss will be in the many billions, and will just be a little less or more depending on whether this PE deal was good or not.
I suspect it’s being sold only because that gets the cost of IndyMac’s generous loan mods off the govt’s books for a while, until Sheila has moved on. That may cost the taxpayers a little more than keeping it, but I doubt Sheila is very concerned about that.
