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FDIC hires Newmark Group to sell billions of Signature Bank debt
Real Estate - MARCH 29, 2023

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FDIC hires Newmark Group to sell billions of Signature Bank debt

by Andrea Zander

The Federal Deposit Insurance Corp. (FDIC) has hired Newmark Group to sell about $60 billion of failed lender Signature Bank's loans, a person familiar with the matter told Reuters on Wednesday.

Signature is a large lender to builders and managers of office buildings, rental apartments, shopping complexes and other commercial properties.

There is concern over the effects the bank failure will have for the commercial property market, including possible decreasing of lending, slow down of construction and another recession.

About 80 percent of all bank loans for commercial properties come from regional banks, according to Goldman Sachs economists. And thousands of small- and medium-sized banks that make up the bulk of U.S. lenders account for about 70 percent of so-called CRE loans, according to JPMorgan analysts.

CRE loans make

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