by Dismal-Jellyfish
Government takes ownership of failed bank then sells loan portfolio to the public. 🤔 Why does that sound so-o-o familiar?
— Susanne Trimbath PhD (@SusanneTrimbath) April 4, 2023
FDIC Alert! FDIC announced the framework of a marketing process for the approximately $60 billion loan portfolio retained in receivership following the failure of Signature Bank, New York, New York. This sale will go towards paying back the Feds “Other credit extensions” ($180.1 billion as of 3/29).
Source:Â www.fdic.gov/news/press-releases/2023/pr23026.html
The Federal Deposit Insurance Corporation (FDIC) today announced the framework of a marketing process for the approximately $60 billion loan portfolio retained in receivership following the failure of Signature Bank, New York, New York.
The portfolio is comprised primarily of commercial real estate (CRE) loans, commercial loans and a smaller pool of single–family residential loans. The CRE loans include a concentration of multifamily properties, primarily located in New York City.
The FDIC has a statutory obligation, among other factors, to maximize the preservation of the availability and affordability of residential real property for low– and moderate–income individuals. The FDIC is currently reviewing the CRE loans secured by multifamily residences that are rent stabilized or rent controlled, an important source of affordable housing in New York City. For this portion of the portfolio, the FDIC plans to reach out to state and local government agencies, as well as community–based organizations, to inform them of the FDIC’s efforts and to seek their input as the FDIC develops its marketing and disposition strategy.
The FDIC expects to begin its marketing of the retained loan portfolio of the former Signature Bank later this summer. The FDIC has retained Newmark & Company Real Estate, Inc. (Newmark) as an advisor on this sale. Interested parties should contact [NewmarkSBBPortfolio@nmrk.com](mailto:NewmarkSBBPortfolio@nmrk.com) to obtain further information about the sale and the qualifications to participate.
For general information about the FDIC’s asset sales program, visit the FDIC’s website at www.fdic.gov/resources/resolutions/asset-sales/.