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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Posted in FDIC on Oct 30th, 2009
The Associated Press reported a major development today regarding commercial mortgage modifications. A Policy Statement was released by the FDIC providing that banks will not be looked upon adversely by regulators for engaging in prudent commercial loan modifications. As I discussed extensively in my previous posts, one of the major reasons that banks have been [...]
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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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Another day and another article sounding the alarm of the impending collapse of the commercial real estate markets. Reuters reported today that the worst is yet to come for real estate loans. Analysts estimate that banks will likely continue to take write-downs on commercial loans for the next two years and the number of such [...]
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