ULI Panel Offers Inside Look at FDIC’s Distressed-Asset Deals

As the November elections approach, the federal government is receiving plenty of criticism for everything from the deficit to the housing crisis. But judging from the panelists at last week’s Urban Land Institute fall meeting in Washington, D.C., one effort that should be praised is the Federal Deposit Insurance Corp.’s (FDIC) program for disposing of the real estate assets from failed banks. In the past three years, the FDIC has responded to the failure of nearly 300 banks, according to Greenberg Traurig’s Tom Galli, who moderated the Thursday afternoon session. That adds up to $620 billion in assets from the closed banks, of which $530 billion were transferred to acquiring institutions, explained James Wigand, who is deputy director of resolutions and receiverships at the FDIC. The assets themselves have been a diverse bunch, ranging from massive portfolios of condo deals to single-family residential loans, REOs; and acquisition, development, and construction (AD&C) loans for residential and commercial projects.

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