The auction of the $33 billion in real estate loans and other assets is the largest commercial real estate transaction of the year. The Federal Reserve and Treasury Department took the extraordinary step of designating Signature Bank a systemic risk to the financial system, allowing regulators to backstop uninsured deposits. Signature Bank board member and former congressman Barney Frank called the single-day billion dollar run on the bank self-inflicted. Related Fund Management, a Related Companies affiliate, won the first pool of Signature Bank loans tied to NY rent-regulated apartments despite getting outbid by 10+ cents on the dollar. The prices paid for Signature loans, especially for the commercial properties and non-regulated apartments, will provide the market-critical data points in determining market condition.

Source: Wall Street Journal January 08, 2024 13:37 UTC