FDIC Sells $234 Million Of CRE Loans At 30% Discount, Beal Bank Largest Bidder
The FDIC keeps auctioning off its busted CRE loan portfolio, most of it remnants collected from failed banks which it had to pick up. With the recent additions of Colonial and Guaranty, look for this list to explode. In the meantime, in June, Sheila's agency saw only 45 CRE loans auctioned off, for a total of $234 million at a $163 million purchase price, a 30.4% average discount, which has been declining over the past 5 months in line with the overall market.
As a point of reference in March, the FDIC auctioned off 1,328 performing and non-performing loans in for $218 million, which at that time was a 54% discount. And once again, as has been the norm, the biggest buyer in size is Andrew Beal's LNV Corporation, who seems to be in some hot water lately, $1.1 billion worth of hot water to be precise.
(2 votes)
on Fri, 08/21/2009 - 13:56
#43829
Where's the part where you explain why this is good for the stock market?
I'm confused.
on Fri, 08/21/2009 - 14:00
#43838
Silly boy, no explanation necessary. Every possible data point of any type, smell, magnitude, direction, genus, species, sex, and race is good for the stock market.
Do come along.
on Fri, 08/21/2009 - 15:57
#44099
Don't assume will bring down this puppy. It won't. The has our backs, you can't
on Fri, 08/21/2009 - 17:22
#44213
Ok thanks guys, buying AIG stock asap.
on Fri, 08/21/2009 - 14:07
#43850
Whew boy am i glad FDIC got that $163 mil back. That might be enough to cover another whole week's worth of bank failures
on Fri, 08/21/2009 - 14:07
#43852
Isn't that a 70 percent discount, or 30 cents on the dollar?
on Fri, 08/21/2009 - 14:22
#43880
You cannot be serious
on Fri, 08/21/2009 - 14:24
#43885
You are right, it is a bit confusing, because it says "average discount" right next to 69%, but it actually means average recovery, as $163M recovered out of a book value of $234M is a 30% discount or 70% recovered.
on Fri, 08/21/2009 - 14:25
#43886
You are right, it is a bit confusing, because it says "average discount" right next to 69%, but it actually means average recovery, as $163M recovered out of a book value of $234M is a 30% discount or 70% recovered.
on Fri, 08/21/2009 - 14:08
#43854
This is a green shoot, yes?
on Fri, 08/21/2009 - 14:27
#43889
Green ties starched by Chinese laundromats in Brazil.
on Fri, 08/21/2009 - 14:17
#43862
Ramp time.
on Fri, 08/21/2009 - 14:17
#43868
good point, I guess you're right
on Fri, 08/21/2009 - 14:19
#43872
S&P 500 --> infinity ?
on Fri, 08/21/2009 - 15:06
#44009
infinity and beyond!
on Fri, 08/21/2009 - 15:58
#44105
1/infinity
on Fri, 08/21/2009 - 14:21
#43876
I see the green shoot! I see it! In march average discount was 54%, in June it was 30.4%! That's close to a 30% gain in two months! Which means (at this rate) those loans will be 180% higher a year from March! Can I get a job at CNBS now? I think I fully qualify...
on Fri, 08/21/2009 - 14:32
#43899
C.N.B.S stands for Continuously Narrating Bull Shit[Crap if you really want the C] or you can just change the tab on your computer to "Liar TV" like I have, at least you know what to expect when you click there [just to see how to spin a story] and with those expectations you can laugh and relax like it's Friday.
on Fri, 08/21/2009 - 14:22
#43879
Commercial real estate delinquencies are now 6.94% of all commercial real estate loans; this is up 322 basis points year-to-year and 148 basis points quarter-to-quarter. That is an acceleration from the 270 basis point year-to-year rise last quarter and the 94 basis point increase from Q3 to Q4. We have clearly gone ballistic on commercial real estate losses, but we are nowhere near the depraved peaks of the early 90s at 12.57%, we are however on quite a trajectory towards that neighborhood
http://seekingalpha.com/article/139172-c-i-loans-are-starting-to-unravel
on Fri, 08/21/2009 - 17:55
#44101
hat's U.N. Commissars code for telling us what the temperature is gonna be in our outdoors
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
on Fri, 08/21/2009 - 14:22
#43881
And thus the 3pm pump has begun
these guys are getting so predictable it's getting boring
on Fri, 08/21/2009 - 14:27
#43890
I guess losing tens of millions to pro poker players isn't enough gamble for Andy Beal. He needs billions of dollars of action with an even greater negative expectation in the CRE market.
on Fri, 08/21/2009 - 14:31
#43898
Now let me see if I get it there is volume (they exagerated it a little bit) but there is volume. And there the are above 1025 ... so this is a new bull market.
The state of the economy wich is on the dumpster, the global trade which is inexistent, the sorry state of the media who serves Goldman Sachs. That does not matter, we are in the new bull market because the computers traded more today and they parked it above 1025
on Fri, 08/21/2009 - 14:36
#43917
Good for another 70% in Maguire, give or take.
on Fri, 08/21/2009 - 14:44
#43948
Andy Beal is a cheap SOB on top of being smart as hell...this bears watching.
on Fri, 08/21/2009 - 15:02
#43996
Since when does an equity market have to be rational?
Can anybody explain?
Why are so many hung up on the irrationality of the stock market?
Stock markets are inherently irrational because they are pure speculation.
You want some rationality? Go to the bond/credit markets.
on Fri, 08/21/2009 - 15:43
#44070
Geithner: Government Dealings With Goldman Were Appropriate
Treasury Secretary Geithner said government officials acted appropriately in their dealings with Goldman Sachs during the heat of the financial crisis last year.
See video, barf up your lunch @ wsj.com
on Fri, 08/21/2009 - 15:45
#44072
Looks like Beal loses the $10mm he "invested" to get a $1b write off. He doesn't lose $1b...and no penalties.
Nice try though. I agree with Axios. He's a smart fella.
on Fri, 08/21/2009 - 17:55
#44097
That's the new normal. Remember the day GM died... markets ramped up!
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
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