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FDIC Sells $234 Million Of CRE Loans At 30% Discount, Beal Bank Largest Bidder

Tyler Durden's picture




 

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.

 

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Fri, 08/21/2009 - 14:56 | 43829 TumblingDice
TumblingDice's picture

Where's the part where you explain why this is good for the stock market?

 

I'm confused.

Fri, 08/21/2009 - 15:00 | 43838 I need more cowbell
I need more cowbell's picture

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.

Fri, 08/21/2009 - 16:57 | 44099 AGGfarm (not verified)
AGGfarm's picture

Don't assume will bring down this puppy. It won't. The has our backs, you can't

Fri, 08/21/2009 - 18:22 | 44213 TumblingDice
TumblingDice's picture

Ok thanks guys, buying AIG stock asap.

Fri, 08/21/2009 - 15:07 | 43850 Project Mayhem
Project Mayhem's picture

 

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

Fri, 08/21/2009 - 15:07 | 43852 Anonymous
Anonymous's picture

Isn't that a 70 percent discount, or 30 cents on the dollar?

Fri, 08/21/2009 - 15:22 | 43880 Anonymous
Anonymous's picture

You cannot be serious

Fri, 08/21/2009 - 15:24 | 43885 Anonymous
Anonymous's picture

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.

Fri, 08/21/2009 - 15:25 | 43886 Anonymous
Anonymous's picture

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.

Fri, 08/21/2009 - 15:08 | 43854 taraxias
taraxias's picture

This is a green shoot, yes?

Fri, 08/21/2009 - 15:27 | 43889 Rollerball
Rollerball's picture

Green ties starched by Chinese laundromats in Brazil.

Fri, 08/21/2009 - 15:17 | 43862 mule65
mule65's picture

Ramp time.

Fri, 08/21/2009 - 15:17 | 43868 Anonymous
Anonymous's picture

good point, I guess you're right

Fri, 08/21/2009 - 15:19 | 43872 Eduardo
Eduardo's picture

S&P 500 --> infinity ?

Fri, 08/21/2009 - 16:06 | 44009 curbyourrisk
curbyourrisk's picture

infinity and beyond!

Fri, 08/21/2009 - 16:58 | 44105 Joe Sixpack
Joe Sixpack's picture

1/infinity

Fri, 08/21/2009 - 15:21 | 43876 Deficient Market
Deficient Market's picture

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...

Fri, 08/21/2009 - 15:32 | 43899 Anonymous
Anonymous's picture

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.

Fri, 08/21/2009 - 15:22 | 43879 windhorse2000
windhorse2000's picture

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

Fri, 08/21/2009 - 18:55 | 44101 AGGfarm (not verified)
AGGfarm's picture

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

Fri, 08/21/2009 - 15:22 | 43881 taraxias
taraxias's picture

And thus the 3pm pump has begun

these guys are getting so predictable it's getting boring

Fri, 08/21/2009 - 15:27 | 43890 Anonymous
Anonymous's picture

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.

Fri, 08/21/2009 - 15:31 | 43898 Eduardo
Eduardo's picture

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

Fri, 08/21/2009 - 15:36 | 43917 Gilgamesh
Gilgamesh's picture

Good for another 70% in Maguire, give or take.

Fri, 08/21/2009 - 15:44 | 43948 AxiosAdv
AxiosAdv's picture

Andy Beal is a cheap SOB on top of being smart as hell...this bears watching.

Fri, 08/21/2009 - 16:02 | 43996 Anonymous
Anonymous's picture

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.

Fri, 08/21/2009 - 16:43 | 44070 Alexander Supertramp
Alexander Supertramp's picture
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

Fri, 08/21/2009 - 16:45 | 44072 Cow
Cow's picture

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.

Fri, 08/21/2009 - 18:55 | 44097 AGGfarm (not verified)
AGGfarm's picture

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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