Do you remember the failed IndyMac Bank? It’s failure cost the FDIC over $10 billion. The FDIC eventually sold IndyMac bank to a group of billionaire investors, along with a “shared loss” agreement wherein the FDIC agreed to help pick up the tab for the costs associated with shoddy mortgages that IndyMac had originated. This agreement was made in 2009, and there has been very little information about it made available to the public.
Today, Kevin Stein, associate director at CRC, and Daniel Rodriguez, director of the Community Wealth Department at East LA Community Corporation, have a post on the American Banker blog (BankThink) about this topic.