(Source: Dow Jones Newswire)
When commercial real estate markets went bust two decades ago, bankers said they learned a hard lesson.
The latest earnings reports from U.S. banks suggest many, in fact, didn’t.
Losses from loans tied to strip malls, office buildings, housing complexes, and the like are hurtling toward record levels not seen since the infamous savings-and-loan crisis.
But at some banks, according to the latest round of earnings reports, the commercial real estate crisis has already arrived. Those companies’ worsening conditions could well foreshadow the heavy losses at regional lenders in quarters to come – and failures or takeovers for some.
Read Marshall Eckblad’s full article “UPDATE: Widening Comml Real Estate Crisis Hits US Banks” in CNN (July 27, 2009).