December 23, 2009
The FDIC has received over a dozen bids for a $1.1B pool of mortgage assets made by now-failed banks. This would mark the second largest sale of FDIC assets since Starwood’s acquisition of Corus Bank assets back in October. No word on how that deal is going, but the deals the FDIC is structuring only give the equity investor minority ownership of the assets, with the FDIC playing the role of the JV partner putting up the assets and providing some of the financing.
Things are moving slowly, partly because the FDIC is pooling assets, and more importantly, banks who have not yet gone under are not being forced to sell off assets. Supposedly the banks don’t want to sell at the “low point” in the cycle. But the market has been trending down off the peak for 2 years so who knows if we are at the bottom. Nonetheless though, the lack of movement has “frustrated” the money that is now sitting on the sidelines waiting for the market to open up and investors are increasingly “moving up the food chain” and going after FDIC assets.
- FDIC Property Sales Approaching 90’s Levels
- Tamalpais Bank in Hot Water
- Investors Wary of Writing Blank Checks
- United Commercial Bank Goes Down
- FDIC Hinting At Forcing Banks To Sell Assets