The Problem With the FDIC's Rent Regulated Portfolio

$34 billion worth of loans, 23 of which are in New York City, secured by rent stabilized properties. FDIC has two mandates: preserve housing and maximize sales proceeds. Even for vacant buildings that have deferred maintenance issues with tenant problems, there's a buyer for that. "There's very little incentive to put in the capital" required to make these buildings enjoyable places to live.