MICHAEL J. DE LA MERCED, NY Times
Five years ago, after the mortgage market had imploded, a group of investors — including the billionaire hedge fund managers George Soros and John A. Paulson — banded together to create a new bank from the wreckage of the failed California lender IndyMac.
Now those investors are set for a big payday, thanks to the CIT Group, a lender that itself ran into trouble after the housing bust.
On Tuesday, CIT said it would acquire the bank that rose from IndyMac’s ashes — OneWest — paying $3.4 billion in cash and stock to its hedge fund and private equity owners.
The deal illustrates how casualties of the financial crisis have moved on, and even prospered.