The facts: in April, the average auction clearing price on the 331 loans the FDIC sold in January and February was 49.3%. In March, the number of loans FDIC sold in various auctions increased almost four-fold to 1,328, for a total of $470 million in book values of sales, with the average price dropping even more: the latest being at 46.4%. So much for a stabilization in the commercial real estate market.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggw26ZNcW8y516imDedQrhsXsqQo_Nyqj-PpeF6dni9az3jte13ipJ-tHMdlq1kvuTBN_78VZBUymfVVBpM-4y3yetlogBiLvxVigA4WPBIAGq7Ik_hbLytFm1yttxFdWogsKMzVV597o/s400/FDIC+Loan+Sales+-+March.jpg)
And for those who claim that this price is distorted because it includes several non-performing loans, well - we have a control for that too. Compiling just the data from performing loans gives a great auction clearing price boost to... 51%.
Yes, the same FDIC which is advocating using taxpayer money to endorse and guarantee legacy loan sales as part of the PPIP in the 80/90 cents on the dollar range, continues selling performing commercial loans at about 50% off their book value. Ms. Bair's hypocrisy continues to amaze. Sphere: Related Content Print this post