FDIC Hires Newmark to Sell Billions of Signature Debt

The Federal Deposit Insurance Corp. (FDIC) has hired Newmark Group Inc to sell about $60 billion of Signature Bank loans, The Wall Street Journal reported 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 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.