Fdic Hires Newmark Group To Sell Billions Of Signature Bank Debt: WSJ (updated)

Newmark

29/03/2023 13:36

(Adds details, background)
       March 29 (Reuters) - The Federal Deposit Insurance Corp
(FDIC) has hired Newmark Group Inc  NMRK.O  to sell about $60
billion of Signature Bank loans, the Wall Street Journal
reported on Wednesday citing people familiar with the matter. 
    The commercial property market is likely to see a ripple
effect from the sale of a loan book this large, at a time when
property values are already being squeezed, the report added. 
    FDIC and Newmark Group did not immediately respond to
Reuters' requests for comment on the report.  
    The U.S. banking industry has been reeling from the fallout
of recent failures, with regulators seeking to reassure
customers their deposits were safe and that the American banking
system remained healthy. 
    Earlier this month, state regulators closed New York-based
Signature Bank, making it the third largest failure in U.S.
banking history.  
    On March 19, a subsidiary of New York Community Bancorp
 NYCB.N  entered into an agreement with U.S. regulators to buy
deposits and loans from Signature Bank. 
    The subsidiary, Flagstar Bank, assumed substantially all of
Signature Bank's deposits, some of its loan portfolios and all
40 of its branches. 
    
    

 (Reporting by Manya Saini in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Manya.Saini@thomsonreuters.com;))