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Saturday, July 29, 2023

FDIC launches sale of $18.5 bln of Signature Bank loans

 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."

https://www.marketscreener.com/quote/stock/BROOKFIELD-ASSET-MANAGEME-147562477/news/FDIC-launches-sale-of-18-5-bln-of-Signature-Bank-loans-Bloomberg-News-44457611/

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