IndyMac made headlines when it collapsed, and then some more when it was announced that a private equity firm consortium led by Dune Capital will buy what remains of it. A good vulture move? The Economist says this: "What remains of IndyMac's franchise is of questionable value, to put it charitably...But the deal's terms are suitably sweet." The buyers take the first 20 percent of losses, the government is on the hook after that. The government is also financing a large chunk of the deal for the California bank.

Private equity firms have not fared well in financial services. Most famously, TPG invested $2 billion in Washington Mutual, which subsequently all but failed. But the group may have bought at very close to the bottom. The group certainly thinks the industry will rebound at some point, and it now has a vehicle that it can use to roll up a lot of other assets.

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