Posted on Tuesday, April 6, 2010
Even Elizabeth Warren, head of the Congressional Oversight Panel overseeing TARP, is worried that about half of all commercial real estate mortgages will be underwater, and most are concentrated in regional banks.
2,988 banks are at risk over the next three years.
Comptroller of the Currency John Dugan has said;
“We know that significant CRE concentrations in economic downturns can lead to an increase in problem banks, an increase in bank failures, loss of jobs, loss of incomes, loss to communities, loss to the deposit insurance fund, and higher costs for all banks, even those that do not have CRE concentrations.”