American Fortune Life

Little Versailles in Beverly Hills.

The classic conference room was already full of people, and Andy sat on the chief seat, looking down at the details of IndyMac Federal Bank, which was handed over to the think tank by the Federal Deposit Insurance Corporation of the United States.

The number of members of the think tank who came from New York this time reached 50. The most important thing is that the branch size of Indy Mac Federal Bank has reached 33. Even if 3,800 employees have been laid off before the takeover, this is already India. Dimichael Bank has half the number of people. He needs 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, IndyMac's share price plummeted 87% in 2007, and has plummeted another 95% this year. On the last trading day before the collapse, its shares closed at $0.28.

The U.S. federal government is expected to lose up to $8 billion from IndyMac Bank, which makes the FDIC eager to find a "successor" to take over the bank. As there is still a wave of bank failures coming, the time is quite tight.

IndyMac has $23.5 billion of its principal assets in commercial loans, mortgages, and subprime loans. Whoever takes over the bank will face enormous risks.

"I have persuaded the FDIC to sell IndyMac for approximately $1.5 billion, including IndyMac branches, deposits and assets.

The FDIC also agreed to enter into a loss-sharing agreement. . . . . . "

Hearing Al's flat tone, Andy couldn't help but froze slightly as he flipped through the documents. He looked at Al with a stunned look, and said uncertainly, "Agreement on sharing losses?!"

Alvetrie smiled calmly and confidently and said: "Actually, this is what I thought of temporarily when I was negotiating with the FDIC. These guys didn't want to be idle during the period when they took over IndyMac Bank. Not only did they sell a large number of secondary home loans, reduce their deficit, and want to do a lot of similar home loans for Fannie Mae, Freddie Mac, and the securitized mortgages issued by the latter have been plummeting in price, and I warned them that if they did that, we Will reject the offer.

Based on their detailed information, we value IndyMac's total assets at $32 billion and actual assets (loans less deposits) at $13.9 billion.

Our advantage is cash payment. I told them that if they want us to pay more cash, we will not accept some seriously problematic assets.

In the end, the FDIC agreed to hold some of the more problematic assets and agreed to a risk-sharing agreement under which the FDIC would cover 95 percent of IndyMac's total loan portfolio losses if they exceeded 30 percent. "

Andy's eyes lit up, and he couldn't help laughing happily: "That means I can complete the acquisition of 33 branches, deposits and assets of IndyMac Bank with only 1.5 billion US dollars!"

"A capital injection of about 1.3 billion U.S. dollars is needed to pay in advance the loss risk of the 5% of the loan portfolio that we bear!"

"Their guts are too fat! Don't they worry that we will get rid of the burden of those high-risk loans?" Andy couldn't help but lamented the courage of the FDIC guys.

You must know that according to normal procedures, even if the borrower violates the loan conditions, the bank will usually try its best to avoid losses. For example, the recovery of real estate, the auction of collateral such as cars, etc., and the loss sharing agreement means that the future losses will be borne by the government.

"Hehe, it's not that they are brave, it's that they have no choice. They have paid 1.3 billion in deposit insurance compensation in the past two weeks, and there is currently no definite price to estimate the value of those loan portfolios. The financial market has stopped. What are you doing?" Neither wanted to buy it, and the FDIC had to sign a risk-sharing agreement, but that doesn’t change the fact that we’re also taking significant risk.”

"Oh, it's okay, it's okay,

Isn't it 1.3 billion? . . Hehe, it’s really interesting, it’s 1.3 billion again, anyway, it’s not my money, it’s all from the Federal Reserve, if you lose it, you’ll lose it, that’s good, haha, that’s good, I used 1.5 billion to buy Indy with 33 branches Mike Bank and the 9.6 billion deposits have already made a lot of money, so let them use the money to pay for it. "

Andy patted the table and burst out laughing, the corners of the mouths of the other people in the conference room twitched unnaturally, Nima, the boss's manners really make people speechless, don't they have any sense of responsibility? ? This is from the beginning, I made up my mind to get rid of the FDIC!

Well, it seems that this pit FDIC has to jump if it does not jump.

"Hehe, I think so too!" Alvetrie showed a harmless smile on his face, then handed Andy a document and said: "This is my strategic layout for taking over IndyMac Bank, which is divided into three steps. "

Andy is in a really good mood now, the smile on his face is getting brighter and brighter, his big white teeth can't be hidden at all, he took the document handed over by Al, and started to read it.

"In fact, to achieve the goal of a quick turnaround, we only need to quickly deal with IndyMac Bank's non-performing loans and other assets. Anyway, the loss sharing agreement signed by the FDIC will make our work much easier.

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

The last thing is to repackage this collection of assets into a new institution, a new bank! The new bank's business returns to a single model, avoiding the non-traditional mortgage lending business that led to the bankruptcy of IndyMac Bank, making it a major provider of prime mortgage loans and equivalent senior loans.

I didn’t write about the last step, no matter whether you want to turn it into a private bank or relist it, this will strengthen your capital capacity and make it a stable source of deposits! "

Andy looked at the plan, sighed softly, closed it and pressed his right hand on the plan, looked at the chief consultant of his think tank with extremely satisfied approval in his eyes and said: "If it's not that the think tank can't do without you, I really want 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 in terms of dealing with the bad loans and other assets in the future. What we need is a master who can sell the destruction of the economy!"

Hearing Al's words, Andy's complexion changed slightly, and his expression became dignified. The other think tank members also looked at their think tank boss with serious expressions, a little shocked, and didn't understand why his boss would propose such a candidate direction of selection.

"That's right, we need someone who can blatantly highjack, mine the profits in risk-sharing agreements, encourage foreclosures, trigger loss-sharing agreements..."

Al seemed to be talking about something unimportant, the smile on his face never dissipated, even though everyone, including Andy, had already changed their complexions drastically due to 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 Become notorious, and perhaps the future Occupy Wall Street, he Andy Smith will also become one of the main objects of protest.

Seeing other people create homeless people, Andy may not feel much, but to be honest, he is a little hesitant to let his bank create such a thing by himself.

Al's deep eyes flashed with splendor. When he saw the young big boss who was touching his chin and lowered his head in thought with a dignified expression, he knew very well that the big boss's heart was not cold enough, and that profit first is what a successful big capitalist needs to implement. Philosophy of life, inexplicable soft-heartedness and pity will only miss opportunities, his pupils shrank slightly, and Al said lightly: "As long as the bank realizes 50% of the foreclosure rights, the FDIC expects to pay for IndyMac Bank. The total loss reached 10 billion US dollars, and this money can fall into your pocket if we want to."

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