Friday, February 19, 2010

More Fuel for the Credit Crunch (Crisis) - 1.2T in Commercial Real Estate

Note: This article focuses on Washington, DC but the potential affects are Nationwide. See additional links below.

Who Will be Hit Hardest?
 
The foreclosure wave has ebbed and flowed over the last two years, but this next crest is expected to be ferocious. There are big names at-risk, like the Mayflower Hotel and the Boulevard at Capital Centre in Largo, but the smaller community banks are the entities who must really brace themselves. They are the lenders who issue a higher percentage of commercial loans, and many of them held onto their loans rather than sell them to different investors. The Committee’s report notes that the 3000 community banks with a high proportion of commercial real estate loans comprise nearly 40% of the banking industry.

Complete article HERE

 

And a thought provoking discussion from Zero Hedge under the psuedonym Tyler Durden HERE.

No comments:

Post a Comment