Reuters Says Commercial Real Estate Still Hurting Banks (C, BAC)

Within a statement from Reuters, commercial real estate (CRE) may yet lastly hurt banks lending, mainly small, community banks where lending has been mainly strong this year.

Even though the mega banks, such as Citigroup (NYSE: C) and Bank of America (NYSE: BAC [FREE Stock Trend Analysis]) aren't lending, small household banks have enjoyed growth in their loan collections. They at the present make up about 40 percent of U.S. commercial and business loans, more than at any point in the past twenty five years.

As a lot of believe that more commercial real estate losses are to come, solutions to the trouble are at present being batted around in Washington to help relieve this issue. Lone solution would see the formation of a European-style covered bond market to loosen up real estate lending. The other answer is to assurance the loans, guaranteeing $25 billion in new loans. Together of these issues face important hurdles in terms of getting approved before Congress goes on recess later this month.

for more news