“A lot of this is going to pass like a kidney stone. Painful and bloody.”
That was one of the more colorful reactions to Sunday’s collapse of Signature Bank, a major lender to New York’s multifamily players. With any sudden shutdown of a key institution, panic and uncertainty abound, and The Real Deal’s reporters dove deep into the issue, speaking to developers, landlords, other lenders and attorneys about the possible fallout.
In the above video, TRD’s Hiten Samtani breaks down what we know so far about the Signature Bank situation: where the main pain points are, what’s not as bad as it looked upon first glance, and what lingering questions still need to be answered.
“One thing that I don’t think real estate players have thought about closely yet is that Signature was their bank; they had deep relationships with execs there, execs who were blue-collar guys with big pocketbooks, kind of like themselves,” Samtani said. “It might be trickier to have the head of multifamily lending at JPMorgan on speed dial – but that’s for another time.”
Watch the video above and share your biggest concerns about how the Signature situation is unfolding.
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