President-elect has picked Steve Mnuchin as his choice for Treasury Secretary.
Mnuchin, 53, is Chairman and CEO of OneWest Bank Group — the former IndyMac Bank at the heart of the mortgage crisis that created the 2008 financial collapse. At the time IndyMac’s failure was the third largest in banking history at $32 billion in losses.
Mnuchin, the former Goldman Sachs executive, and a host of other hedgies including John Paulson, George Soros, and Chris Flowers to snap up the ailing regional bank with a $1.55 billion offer and plenty of backstops from the feds to almost guarantee profits once the housing market stabilized.
As part of then Treasury Secretary Hank Paulson’s bail out, Fannie Mae and Freddie Mac along with the Federal Reserve’s discount window bought up all the troubled mortgages they could find at 100 cents on the dollar.
The rest as they say is history as the Mnuchin group profited mightily doubling assts under management at the bank to $27 billion.