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