Friday, November 6, 2009

Small banks didn't cause the mess, but no bailout for them

By Kevin G. Hall | McClatchy Newspapers

WASHINGTON — Just as the housing sector appears to be recovering, gathering problems in the commercial real estate market threaten to become a new drag on the economy.

How dire is it? Unable to find enough sound banks to acquire failing banks, the FDIC relaxed its rules earlier this year to allow private-equity funds to bid for troubled lenders.

Banks hold about 50 percent of all outstanding commercial real estate loans, many of them smaller regional players. Another 20 percent of commercial real estate loans have been pooled together by investment banks and sold as commercial mortgage bonds, which also are experiencing high default rates. FULL STORY

1 comment:

jsocool said...

need info on recall of us senators in MI Levin and Stabanow. Legalities

Stabenow yesterday on radio said the constitution doesn't matter

Need info and help called the state and they said federal law will not allow it I beg to differ