Little Versailles in Beverly Hills.

Andy sat in the chair of the main seat, looking down at the details of the Federal Bank of IndyMac, which had been handed over to the think tank by the Federal Deposit Insurance Corporation of the United States.

The number of members of the think tank from New York this time has reached 50, and the most important is that the number of branches of Indymac Commonwealth Bank has reached 33, even if it has laid off 3,800 employees before the takeover, which is already half of the number of Indymac Bank. He needed enough of his own people to complete the acquisition in a short period of time.

After hitting a high of $50.11 per share on May 8, 2006, IndyMack's stock price plunged 87 percent in 2007 and has plunged 95 percent this year. On the last trading day before the collapse, its stock closed at $0.28.

The U.S. federal government is expected to lose up to $8 billion from Indymac Bank, leaving the FDIC eager to find a "pick-up" to take over the bank, which is running out of time as there is still a wave of bank failures.

$23.5 billion of Indymac's major assets are commercial loans, mortgage loans, and subprime loans. Whoever takes over the bank will face enormous risks.

"I have persuaded the FDIC to sell Indymac Bank for about $1.5 billion, and the sale agreement includes IndyMack branches, deposits and assets.

The FDIC also agreed to sign a loss-sharing agreement。。。。。。 “

Hearing Al's somewhat flat tone, Andy's hand flipping through the information couldn't help but froze slightly, looked at Al with some dumbfoundedness, and said uncertainly: "Loss sharing agreement?!"

Alvitatre smiled calmly and confidently and said: "Actually, this is also what I thought of temporarily when I was negotiating with the FDIC, this group of guys did not want to be idle during the period when they took over Indymac Bank, not only sold a large number of subprime home loans to reduce their deficits, but also wanted to provide Fannie Mae and Freddie Mac with a large number of similar home loans, and the price of the securitized mortgage loans issued by the latter has been plummeting, and I warned them that if they do so, we will refuse to buy."

Based on the details they provide, we assess Indymac's total assets at $32 billion and actual assets (loans minus deposits) at $13.9 billion.

Our advantage is cash payments, and I told them that if they wanted us to pay more cash, we wouldn't accept some of the most problematic assets.

Eventually, the FDIC agreed to hold some of the more problematic assets and agreed to sign a risk-sharing agreement under which the FDIC would bear 95% of the total losses of Indymac's loan portfolio if they exceeded 30 percent. “

Andy's eyes lit up, and he couldn't help but smile happily: "That means that I only need to spend $1.5 billion to complete the acquisition of 33 branches, deposits and assets of Indymack Bank!"

"We also need to inject about $1.3 billion in capital to pay the risk of losing that 5% of our loan portfolio that we bear in advance!"

"Aren't they too bold! Aren't they worried that we will get rid of the burden of those high-risk loans?" Andy couldn't help but sigh at the courage of the FDIC guys.

It is important to know that according to normal procedures, even if the borrower violates the loan conditions, the bank will usually try to avoid losing money. For example, the repossession of real estate, the auction of mortgages such as cars, etc., and the loss sharing agreement means that the government will bear part of the future losses.

"Hehe, it's not that they're bold, it's that there's no way, they've paid $1.3 billion in deposit insurance compensation in the past two weeks, and there's no definite price to assess the value of those loan portfolios, the financial markets have shut down, people don't want to buy anything, and the FDIC has to sign a risk-sharing agreement, but that doesn't change the fact that we also have to take significant risks. ”

"Hehe, it's okay, it's okay, isn't it 1.3 billion... Hehe, it's really interesting, it's 1.3 billion again, it's not my money anyway, it's all the Federal Reserve's, and if you lose it, you will lose it, so good, haha, so good, I used 1.5 billion to buy IndyMac Bank with 33 branches and 9.6 billion deposits, which is already a big profit, and let them take that money to lose. ”

Andy slapped the table and laughed, and the corners of the mouths of the other people in the entire conference room twitched unnaturally, Nima, the boss's is really speechless, and there is no sense of responsibility at all?

Well, it seems that this pit FDIC has to jump if it doesn't jump.

"Hehe, I think so too!" Alvitatlet smiled innocently, then handed Andy a document and said, "This is my strategic plan to take over Indymac Bank, and it is divided into three steps. ”

Andy's mood is simply cool now, the smile on his face is getting brighter and brighter, and he can't hide his big white teeth at all, so he took the document handed over by Al and began to read it.

"In fact, to achieve the goal of a quick turnaround, we only need to quickly deal with the bad loans and other assets of Indymac Bank, and the loss sharing agreement signed by the FDIC will make our job much easier anyway.

In fact, we are already starting to do the first two steps, such as the first step is to complete the acquisition as soon as possible, and the second step is to build the bank's asset base by taking over other failed banks, such as Miami Valley Bank, Missouri Douglas National Bank, Missouri Hume Bank, and in the future, we can continue to acquire failed small banks to expand branches and lay a good foundation for the third step to establish market share.

The end is to repackage these asset pools into a new institution, a new bank, and the new bank will return to a single model, avoiding the non-traditional mortgage lending business that led to the collapse of Indymac Bank, making it a major provider of prime mortgages and equivalent priority loans.

I didn't write the last step, whether you want to turn it into a private bank or re-list it in the end, it will strengthen your financial ability and make it a stable source of deposits!"

Andy looked at the plan, sighed lightly, closed it and pressed his right hand on the plan, looked at his chief adviser of the think tank with great satisfaction in his eyes and said, "If it weren't for the fact that the think tank couldn't do without you, I really wanted you to be the CEO of the new bank." ”

"Boss, to be honest, I am not suitable to be in charge of the new bank when it comes to dealing with those bad loans and other assets in the future, what we need is a master who can peddle and destroy the economy!"

Hearing Al's words, Andy's face couldn't help but change slightly, and his expression became solemn, while the other members of the think tank also looked at their think tank boss with solemn faces, a little shocked, and didn't understand why their boss would propose such a candidate's choice direction.

"That's right, we need someone who can blatant roadblocks to mine profits in risk-sharing agreements, encourage foreclosures, trigger loss-sharing agreements... ”

The smile on Al's face never faded as if he was talking about something inconsequential, even though everyone, including Andy, had been turned by his coldness.

To be honest, Andy didn't think about using his bank to trigger a loss-sharing agreement, because foreclosure would mean evicting people from their homes, and the bank would get the property, which would make his new bank notorious, and perhaps in the future Occupy Wall Street, Andy Smith would also be one of the main targets of protest.

Watching others create homelessness, Andy may not feel much, but to be honest, he is really a little hesitant to be honest when his bank does this kind of thing by himself.

Al's deep eyes flashed with brilliance, seeing the young boss who had been touching his chin and bowing his head in contemplation with a dignified face, he knew very well that the heart of the big boss was not cold enough, and the supremacy of interests was the life philosophy that a successful big capitalist needed to implement, and the inexplicable soft-heartedness and mercy would only miss the opportunity, his pupils shrank slightly, and Al said lightly:" As long as the bank realizes 50% of the foreclosures, the FDIC expects a total loss of $10 billion on Indymac Bank, which can go into the pocket of the boss if we want. ”