J.P. And The Fat Cats By: Bruce Krasting Tuesday, April 20, 2010 9:08 AM

From iStockanalyst.com

This article gets particularly interesting on page two.

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The players in this Indymac- now OneWest Consortium:

Steve Mnunchin – Goldman Alum – Billionaire
John Paulson – Goldman Alum – Billionaire
J. Christopher Flowers – Goldman Alum – Billionaire
Robert Leeds – Goldman Alum – Billionaire
Michael Dell – Dell Computer – Goldman Client – Billionaire
George Soros – Big Goldman Client – Billionaire

There is some evidence that the FDIC has had some “sellers remorse” on the sale of Indymac assets. On 2/21/2010 they did a $2 billion deal where they sold more underwater mortgages. Based on the over collateralization of that transaction it would appear that similar pricing (haircuts) to the OneWest discounts were established. There was a big difference between the OneWest deal and the CMO that was recently done. This time around the FDIC kept the equity. What upside is in the portfolio is theirs to keep. The FDIC kept the equity on a $2b deal but gave it away to One West in a $16b deal. Way to go JP&Co.

There has been some criticism of the FDIC/OneWest deal. Some have suggested that the new owners of the Indymac mortgages have not been treating the old customers very well. Never mind that, what about the depositors who owed nothing to the bank, but lent it to them to give to bad debtors. Now they want to give the deadbeats yet another chance to default.