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<P>&nbsp;</P></DIV></DIV><BR>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>UNITED STATES</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>WASHINGTON, D.C. 20549</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>FORM 8-K</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>CURRENT REPORT</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2>Date of Report (Date of earliest event reported):</FONT><FONT
size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><B><FONT
size=2>August 24, 2005</FONT></B></U><FONT size=2>&nbsp;</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
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    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BORDER-LEFT-COLOR: gray; BORDER-BOTTOM-COLOR: gray; PADDING-BOTTOM: 0in; BORDER-TOP-COLOR: gray; PADDING-TOP: 0in; BORDER-RIGHT-COLOR: gray"
    vAlign=top width="100%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>MAXXAM INC.</FONT></B></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2>(Exact name of registrant as specified in its charter)</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="92%" border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -5.4pt; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Delaware</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>1-3924</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>95-2078752</FONT></B></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(State or other jurisdiction of incorporation or
      organization)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Commission File Number)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.9pt; TEXT-ALIGN: center" align=center><FONT
      size=2>(I.R.S. Employer Identification No.)</FONT></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>1330 Post Oak Boulevard</FONT></B><BR><B><FONT size=2>Suite
      2000</FONT></B></P>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Houston, Texas</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center"
      align=center><BR><BR></P>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>77056</FONT></B></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Address of principal executive offices)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Zip Code)</FONT></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=7>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>Registrant's telephone number, including area code: </FONT><B><FONT
      size=2>(713) 975-7600</FONT></B></P></TD></TR>
  <TR>
    <TD width=223></TD>
    <TD width=36></TD>
    <TD width=96></TD>
    <TD width=12></TD>
    <TD width=4></TD>
    <TD width=20></TD>
    <TD width=210></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2>Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.12in; TEXT-INDENT: -0.12in; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17&nbsp;CFR 240.14d-2(b))</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.12in; TEXT-INDENT: -0.12in; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17&nbsp;CFR 240.13e-4(c))</FONT></P>
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<DIV
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<P>&nbsp;</P></DIV></DIV><BR>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1></FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=281 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P><B><FONT size=2>Item 7.01.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="65%">
      <P><B><FONT size=2>Regulation FD
Disclosure.</FONT></B></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>As has been previously disclosed, Registrant and certain of its
affiliated persons have been pursuing an action, or the Sanctions Motion,
against the Federal Deposit Insurance Corporation, or FDIC, in the U.S. District
Court in Houston, Texas. On August 23, 2005, the court awarded sanctions to
Registrant and those affiliated persons in its decision regarding the Sanctions
Motion. On August 24, 2005, Registrant issued a press release relating to the
court's decision.  A copy of the press release is attached to and incorporated
by reference into this Current Report on Form 8-K as Exhibit 99.1. The court's
order is subject to potential appeal by the FDIC, and Registrant can make no
prediction of the timing or ultimate outcome of the legal proceedings related to
the Sanctions Motion. </FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>This Current Report on Form 8-K, including Exhibit 99.1 incorporated herein, contains certain statements that may
include "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical facts, included herein are
"forward-looking statements." Included among "forward-looking statements" are,
among other things, (i) statements regarding Registrant's business strategy,
plans and objectives and (ii) statements expressing beliefs and expectations
regarding the legal proceedings related to the Sanctions Motion. Although
Registrant believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Actual results could differ
materially from those anticipated in these forward-looking statements as a
result of a variety of factors, including those discussed in periodic reports of
Registrant that are filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this Current Report on Form 8-K.
Other than as required under the securities laws, Registrant does not assume a
duty to update these forward-looking statements.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=336 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="28%">
      <P><B><FONT size=2>Item 9.01.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="71%">
      <P><B><FONT size=2>Financial Statements and
  Exhibits.</FONT></B></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2>c)
Exhibits</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<TABLE
style="BORDER-LEFT-COLOR: gray; BORDER-BOTTOM-COLOR: gray; MARGIN-LEFT: 0pt; BORDER-TOP-COLOR: gray; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: gray"
cellSpacing=0 cellPadding=0 width=631 border=0>
  <TR>
    <TD vAlign=top width="14%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Exhibit </FONT></B><U><B><FONT
      size=2>Number</FONT></B></U><B><U></U></B></P></TD>
    <TD vAlign=top width="85%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center"
      align=center><BR><U><B><FONT
      size=2>Description</FONT></B></U><B><U></U></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="14%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align=center><FONT
      size=2>99.1</FONT></P></TD>
    <TD vAlign=top width="85%">
      <P style="MARGIN: 3pt 0in"><FONT size=2>Press Release, dated August 24,
      2005 (furnished herewith).</FONT></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-ALIGN: center"><B><FONT
size=2>SIGNATURES</FONT></B></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=648 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top width="7%">
      <P><FONT size=2>Date:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P><FONT size=2>August 24, 2005</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P><B><FONT size=2>MAXXAM INC.</FONT></B></P></TD>
    <TD colSpan=3>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=2>
      <P><FONT size=2>By:</FONT></P></TD>
    <TD vAlign=top colSpan=3>
      <P><U><FONT size=2>/s/ J. Kent Friedman</FONT></U></P></TD>
    <TD width="26%">
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=2>
      <P><FONT size=2>Name:</FONT></P></TD>
    <TD vAlign=top colSpan=2>
      <P><FONT size=2>J. Kent Friedman</FONT></P></TD>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=2>
      <P><FONT size=2>Title:</FONT></P></TD>
    <TD vAlign=top colSpan=4>
      <P><FONT size=2>Vice Chairman of the Board and General
    Counsel</FONT></P></TD></TR>
  <TR>
    <TD width=48></TD>
    <TD width=216></TD>
    <TD width=24></TD>
    <TD width=49></TD>
    <TD width=77></TD>
    <TD width=44></TD>
    <TD width=18></TD>
    <TD width=173></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1></FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-ALIGN: center"><B><FONT
size=2>EXHIBIT INDEX</FONT></B></P>
<TABLE style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=631 border=0>
  <TR>
    <TD vAlign=top width="14%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Exhibit </FONT></B><U><B><FONT
      size=2>Number</FONT></B></U><B><U></U></B></P></TD>
    <TD vAlign=top width="85%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center"
      align=center><BR><U><B><FONT
      size=2>Description</FONT></B></U><B><U></U></B></P></TD></TR>
  <TR>
    <TD vAlign=top width="14%">
      <P style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align=center><FONT
      size=2>99.1</FONT></P></TD>
    <TD vAlign=top width="85%">
      <P style="MARGIN: 3pt 0in"><FONT size=2>Press Release, dated August 24,
      2005 (furnished herewith).</FONT></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1></FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><B><FONT
size=2>EXHIBIT 99.1</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=547 border=0>
  <TR>
    <TD vAlign=top width="61%">
      <P><B><FONT size=2>For Immediate Release</FONT></B></P></TD>
    <TD vAlign=top width="17%">
      <P><B><FONT size=2>Contact: </FONT></B></P></TD>
    <TD vAlign=top width="17%">
      <P><B><FONT size=2>Mike Lake</FONT></B></P></TD>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=2>
      <P style="LINE-HEIGHT: 12pt"><B><FONT
size=2>214.402.5963</FONT></B></P></TD>
    <TD width="1%">
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>
      <P><B><FONT size=2>August 24, 2005</FONT></B></P></TD>
    <TD vAlign=top colSpan=3>
      <P><B><FONT size=2>Susan Elmore</FONT></B></P></TD></TR>
  <TR>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD vAlign=top colSpan=2>
      <P style="LINE-HEIGHT: 12pt"><B><FONT
size=2>713.702.4331</FONT></B></P></TD>
    <TD width="1%">
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD width=336></TD>
    <TD width=96></TD>
    <TD width=95></TD>
    <TD width=13></TD>
    <TD width=7></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>MAXXAM AWARDED OVER $72 MILLION IN LAWSUIT AGAINST FDIC</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>Largest Sanction Ever Against US Government</FONT></B></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>HOUSTON (August 24, 2005) - MAXXAM Inc. (AMEX: MXM) today announced that
Judge Lynn N. Hughes, United States District Court for the Southern District of
Texas, has ordered that the Federal Deposit Insurance Corporation (FDIC) pay
MAXXAM over $72 million dollars in sanctions as measured by legal and other
expenses incurred during its 10-year legal battle against the regulatory agency.
The judgment represents the largest sanction against the Federal government and
incorporates MAXXAM's requests that MAXXAM be reimbursed its reasonable costs
and attorney's fees.</FONT></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>"The ruling is appropriate because the FDIC wasted taxpayer dollars by
pursuing politically motivated litigation that it knew was meritless," said J.
Kent Friedman, General Counsel of MAXXAM. "The actions by the FDIC represent
illegal and shameful government behavior and this is now the second federal
judge who has determined that."</FONT></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>MAXXAM filed a motion to sanction the FDIC for filing a lawsuit that the
FDIC's own legal division's internal analysis concluded had "at least a 70
percent" chance of failing on pretrial motions and, if it survived, the chances
of prevailing on the merits were "marginal at best." The FDIC's standards call
for at least a 50 percent chance of success before initiating legal action. The
FDIC ignored that standard and proceeded with a frivolous lawsuit
anyway.</FONT></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>Judge Hughes stated in his ruling, "By now, Hurwitz has spent nearly
twenty years defending himself against the government. This court cannot restore
completely the damage that this case has done to him personally. It can,
however, make the government pay for its betrayal of the public trust, its
vindictive political assault on a private citizen, and part of the economic loss
that it has caused him."</FONT></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT size=2>In
addition to the FDIC lawsuit, the FDIC paid millions to the Office of Thrift
Supervision ("OTS") for the OTS to initiate an administrative action against
MAXXAM, Charles Hurwitz and others. The OTS' litigation commenced in December
1995 seeking approximately $821M in restitution and civil money penalties. This
action represented nothing more than a second lawsuit by the FDIC. It had the
effect of transferring the FDIC's unlimited financial resources to the OTS in
order to finance the longest and most expensive trial in the history of the OTS
lasting 110 trial days (including 100 for the OTS to present its case) spread
over more than two years. </FONT></P>
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>OTS Administrative Law Judge Arthur Shipe issued a 230-page decision in
September 2001 in which he recommended that all charges against MAXXAM and Mr.
Hurwitz be dismissed. In the wake of Judge Shipe's opinion, the OTS settled with
MAXXAM and Mr. Hurwitz in October 2002 for $206,000; the respondents made no
admission of wrongdoing. The settlement allowed MAXXAM and Mr. Hurwitz to cease
further legal expenditures on their defense in a fashion that represented a
clear victory. It also caused the FDIC to drop its related lawsuit against Mr.
Hurwitz in November 2002.</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1> </FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2>"I
am pleased by the ruling of the Court and feel redeemed not only for myself but
for the company and our employees. This ruling puts to rest a very long process
of defending ourselves against a government agency's erroneous claims and the
subsequent pursuit to hold them accountable," said Charles E. Hurwitz, Chairman
and CEO of MAXXAM. "This pursuit is something no individual should be subjected
to. Fortunately, we had the resources to fight the case and prevail and are now
ready to move on."</FONT></P>
<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>"This decision confirms that the FDIC's current Board of Directors needs
to take a hard look at its legal advisors. While these frivolous legal actions
were not initiated by the agency's current Board of Directors - it continues to
be advised, on this and other litigation matters, by the very legal counsel
whose inappropriate behaviors are cited by Judge Hughes," added
Friedman.</FONT></P>
<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT
size=2>"The FDIC Board and Inspector General need to take a hard look at the
FDIC's past conduct as well as its current practices to make certain that
appropriate protections are in place to prevent similar egregious conduct and
abuses of power from ever occurring again," concluded Friedman.</FONT></P>
<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><B><FONT
size=2>About MAXXAM Inc.</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2>MAXXAM Inc. (AMEX: MXM) is a publicly-traded company, headquartered in
Houston, Texas, with business interests in three industries: forest products,
real estate investment and development and racing operations. </FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2>_xxx_</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1>HOU:2490801.1 </FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P></DIV></BODY></HTML>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported):
August 24, 2005
MAXXAM INC.
(Exact name of registrant as specified in its charter)
Delaware
1-3924
95-2078752
(State or other jurisdiction of incorporation or
      organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
1330 Post Oak Boulevard
Suite
      2000
Houston, Texas
77056
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(713) 975-7600
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 7.01.
Regulation FD
Disclosure.
As has been previously disclosed, Registrant and certain of its
affiliated persons have been pursuing an action, or the Sanctions Motion,
against the Federal Deposit Insurance Corporation, or FDIC, in the U.S. District
Court in Houston, Texas. On August 23, 2005, the court awarded sanctions to
Registrant and those affiliated persons in its decision regarding the Sanctions
Motion. On August 24, 2005, Registrant issued a press release relating to the
court's decision.  A copy of the press release is attached to and incorporated
by reference into this Current Report on Form 8-K as Exhibit 99.1. The court's
order is subject to potential appeal by the FDIC, and Registrant can make no
prediction of the timing or ultimate outcome of the legal proceedings related to
the Sanctions Motion.
This Current Report on Form 8-K, including Exhibit 99.1 incorporated herein, contains certain statements that may
include "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical facts, included herein are
"forward-looking statements." Included among "forward-looking statements" are,
among other things, (i) statements regarding Registrant's business strategy,
plans and objectives and (ii) statements expressing beliefs and expectations
regarding the legal proceedings related to the Sanctions Motion. Although
Registrant believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Actual results could differ
materially from those anticipated in these forward-looking statements as a
result of a variety of factors, including those discussed in periodic reports of
Registrant that are filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this Current Report on Form 8-K.
Other than as required under the securities laws, Registrant does not assume a
duty to update these forward-looking statements.
Item 9.01.
Financial Statements and
  Exhibits.
c)
Exhibits
Exhibit
Number
Description
99.1
Press Release, dated August 24,
      2005 (furnished herewith).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date:
August 24, 2005
MAXXAM INC.
By:
/s/ J. Kent Friedman
Name:
J. Kent Friedman
Title:
Vice Chairman of the Board and General
    Counsel
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press Release, dated August 24,
      2005 (furnished herewith).
EXHIBIT 99.1
For Immediate Release
Contact:
Mike Lake
214.402.5963
August 24, 2005
Susan Elmore
713.702.4331
MAXXAM AWARDED OVER $72 MILLION IN LAWSUIT AGAINST FDIC
Largest Sanction Ever Against US Government
HOUSTON (August 24, 2005) - MAXXAM Inc. (AMEX: MXM) today announced that
Judge Lynn N. Hughes, United States District Court for the Southern District of
Texas, has ordered that the Federal Deposit Insurance Corporation (FDIC) pay
MAXXAM over $72 million dollars in sanctions as measured by legal and other
expenses incurred during its 10-year legal battle against the regulatory agency.
The judgment represents the largest sanction against the Federal government and
incorporates MAXXAM's requests that MAXXAM be reimbursed its reasonable costs
and attorney's fees.
"The ruling is appropriate because the FDIC wasted taxpayer dollars by
pursuing politically motivated litigation that it knew was meritless," said J.
Kent Friedman, General Counsel of MAXXAM. "The actions by the FDIC represent
illegal and shameful government behavior and this is now the second federal
judge who has determined that."
MAXXAM filed a motion to sanction the FDIC for filing a lawsuit that the
FDIC's own legal division's internal analysis concluded had "at least a 70
percent" chance of failing on pretrial motions and, if it survived, the chances
of prevailing on the merits were "marginal at best." The FDIC's standards call
for at least a 50 percent chance of success before initiating legal action. The
FDIC ignored that standard and proceeded with a frivolous lawsuit
anyway.
Judge Hughes stated in his ruling, "By now, Hurwitz has spent nearly
twenty years defending himself against the government. This court cannot restore
completely the damage that this case has done to him personally. It can,
however, make the government pay for its betrayal of the public trust, its
vindictive political assault on a private citizen, and part of the economic loss
that it has caused him."
In
addition to the FDIC lawsuit, the FDIC paid millions to the Office of Thrift
Supervision ("OTS") for the OTS to initiate an administrative action against
MAXXAM, Charles Hurwitz and others. The OTS' litigation commenced in December
1995 seeking approximately $821M in restitution and civil money penalties. This
action represented nothing more than a second lawsuit by the FDIC. It had the
effect of transferring the FDIC's unlimited financial resources to the OTS in
order to finance the longest and most expensive trial in the history of the OTS
lasting 110 trial days (including 100 for the OTS to present its case) spread
over more than two years.
OTS Administrative Law Judge Arthur Shipe issued a 230-page decision in
September 2001 in which he recommended that all charges against MAXXAM and Mr.
Hurwitz be dismissed. In the wake of Judge Shipe's opinion, the OTS settled with
MAXXAM and Mr. Hurwitz in October 2002 for $206,000; the respondents made no
admission of wrongdoing. The settlement allowed MAXXAM and Mr. Hurwitz to cease
further legal expenditures on their defense in a fashion that represented a
clear victory. It also caused the FDIC to drop its related lawsuit against Mr.
Hurwitz in November 2002.
"I
am pleased by the ruling of the Court and feel redeemed not only for myself but
for the company and our employees. This ruling puts to rest a very long process
of defending ourselves against a government agency's erroneous claims and the
subsequent pursuit to hold them accountable," said Charles E. Hurwitz, Chairman
and CEO of MAXXAM. "This pursuit is something no individual should be subjected
to. Fortunately, we had the resources to fight the case and prevail and are now
ready to move on."
"This decision confirms that the FDIC's current Board of Directors needs
to take a hard look at its legal advisors. While these frivolous legal actions
were not initiated by the agency's current Board of Directors - it continues to
be advised, on this and other litigation matters, by the very legal counsel
whose inappropriate behaviors are cited by Judge Hughes," added
Friedman.
"The FDIC Board and Inspector General need to take a hard look at the
FDIC's past conduct as well as its current practices to make certain that
appropriate protections are in place to prevent similar egregious conduct and
abuses of power from ever occurring again," concluded Friedman.
About MAXXAM Inc.
MAXXAM Inc. (AMEX: MXM) is a publicly-traded company, headquartered in
Houston, Texas, with business interests in three industries: forest products,
real estate investment and development and racing operations.
_xxx_
HOU:2490801.1