 clipped from mises.orgFor those thinking that the real-estate bust is all over with — think again. The residential market has hit the ditch and continues to sink lower, but now the commercial property market is rolling over and will take many lenders down the drain with it. America's small and regional bankers are pointing their fingers at the big banks, claiming the big money center banks "have tarred and feathered us," City National Bank chief executive Bill McQuillan told the Wall Street Journal during the Independent Community Bankers of America convention in Phoenix. But banks — large and small — all over the country are loaded with commercial real-estate loans, and that collateral is heading south according to a Deutsche Bank report. Despite being inexperienced and clueless, at least bank workout officers understand what's going on, according to Miller, however the rose-colored-glasses-wearing bank senior managements are counting on real-estate values to turn around by year's end. |
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