According to a report from Bloomberg News, Blackstone is the leading bidder for Signature Bank’s $17 billion in commercial property loans. The Federal Deposit Insurance Corporation (FDIC) has been working to sell off this debt since taking over Signature in March. After considering various bids, the FDIC is now finalizing negotiations with Blackstone due to their low expenses.
Bloomberg also reports that Blackstone is discussing with Rialto Capital about servicing these loans. In March, the FDIC hired Newmark Group to liquidate around $60 billion of Signature Bank’s loans after it went bankrupt earlier this year amidst regional bank instability.
The government announced last week that larger banks will bear most of the cost for replenishing its deposit insurance fund. Banks with assets over $50 billion will pay 95% of fees while those under $5 billion are exempted from paying any fees at all.
It is estimated that an additional $15.8 billion will be collected through these fees within two years.
