FDIC launches sale of $18.5 billion of Signature Bank loans - Bloomberg News
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1970-01-01 08:00
The U.S. Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio

The U.S. Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio from Signature Bank this week, a set of loans linked to major private equity and investing firms, Bloomberg News reported on Friday.

The portfolio comprises 201 performing capital-call loans tied to Starwood Capital Group, Carlyle Group, Blackstone, Thoma Bravo and Brookfield Asset Management, the report said, citing a person familiar with the matter.

The FDIC hired Newmark Group in March to sell about $60 billion of Signature Bank's loans, after state regulators decided to close down the failed lender amid a turmoil in regional banks earlier this year.

The FDIC did not immediately respond to a Reuters request for comment.

The sale was launched on July 25 and is limited to FDIC-insured depository institutions, the report said, citing a notice by the regulator.

The notice reads that the loans for sale "consist of subscription credit facilities to private equity funds."

(Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur)

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