Jul 31, 2023 - Economy

FDIC starts selling $18.5 billion of Signature Bank loans

Illustration of a piggy bank with a blue ribbon, as if it is a prize pig.

Illustration: Maura Losch/Axios

The Federal Deposit Insurance Corp. (FDIC) announced that it's seeking buyers for $18.5 billion in private equity-linked loans from Signature Bank, which collapsed in March.

Why it matters: This is a reminder that it can take less time for banks to fail than for bank regulators to dispose of the wreckage.

Details: The sealed-bid process is split into four pool and is being managed by Newmark, with closing anticipated by October.

  • Bidders must be FDIC-insured depository institutions or commercial banks that don't compete with the borrowers.
  • Bloomberg reports that "the portfolio comprises 201 performing capital-call loans tied to firms including Starwood Capital Group, Carlyle, Blackstone, Thoma Bravo and Brookfield Asset Management."
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