The meltdown in commercial real estate has not been averted, merely delayed. That’s the takeaway from a report released this morning by the panel that oversees the TARP program. It cites the following cheery numbers…
· $1.4 trillion in commercial real estate loans will need refinancing in the next four years· More than half of those loans are underwater· Losses could reach $300 billion· Those losses threaten the solvency of 2,988 banks -- all of which have more than three times their assets tied up in commercial real estate loans· The vast majority of those banks are small fries with less than $1 billion in total assets.
The panel warns this could put a damper on economic recovery. Uh, yeah.
· $1.4 trillion in commercial real estate loans will need refinancing in the next four years· More than half of those loans are underwater· Losses could reach $300 billion· Those losses threaten the solvency of 2,988 banks -- all of which have more than three times their assets tied up in commercial real estate loans· The vast majority of those banks are small fries with less than $1 billion in total assets.
The panel warns this could put a damper on economic recovery. Uh, yeah.
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