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A trillion dollar commercial real estate crisis will begin to unfold in 2010, when short term loans must be refinanced, yet commercial property values have plummeted.
As many as 500 regional banks may fail as commercial loans default, and the FDIC only has 10 billion left to cover insolvent banks. Compounding this Deuthsche Bank forecasts that 48% of home mortgages will owe more than the home is worth by the end of 2011.
Related posts: - FDIC Failed to Limit Commercial Real-Estate Loans, Reports Show (Bloomberg)
- Commercial Real-Estate Loans Pose Risk to Banks, Regulators Say (Bloomberg)
- Associated Bank closes two new commercial real estate loans (Finance and Commerce)
- Five Star Bank Names Commercial Real Estate Executive (R News)
- Commercial real estate to drive U.S. bank failures (Reuters via Yahoo! UK & Ireland News)
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