Posted in Credit Markets on Nov 6th, 2009
It seems that commercial real estate mortgages held on the books of local banks are finally getting the attention they deserve. After several months of both media and government attention on commercial mortgage backed securities, both the FDIC and the media are finally focusing on local banks as well. In an article in Business Week, [...]
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Bloomberg reported that Capmark Financial Group, one of the largest U.S. commercial real estate finance companies has filed for Chapter 11 bankruptcy. Capmark was feeling pressure on two fronts. First and foremost, they had originated more than $10 billion worth of commercial real estate debt. As the default rates on these loans began to increase, [...]
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Posted in Credit Markets, FDIC on Oct 19th, 2009
In another Bloomberg article today, it was reported that the FDIC basically dropped the ball when it came to enforcing their own guidelines. In 2006, the FDIC set forth guidelines providing that banks should not have commercial real estate holdings that exceeded 300 percent of their capital. I guess it’s pretty fair to say that [...]
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Posted in Credit Markets on Aug 12th, 2009
An article today by The Associated Press discusses an issue that I have felt for some time now has gone unaddressed by the media and the government. This issue is that of “whole” loans which are also referred to as portfolio loans. These are loans that are held by the lenders, as opposed to commercial [...]
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