So the FDIC takes over Indymac and pays an advance dividend of 50% on deposits over 100k Why pay the advance dividend? Also Financial Statements show Indymac had $11 billion in long-term debt. I assume this debt was cancelled with the takeover. The bank should be in great shape with $11 billion in liabilities off the books but FDIC still records $8 billion loss. What am I missing here? Also, how does the FDIC decide which banks can buy the assets of failed banks. At what price and who determines the value?