CapitalSource posts $274 million loss citing commercial loans

November 4, 2009

Editor’s Note:  Most interesting piece of this news piece is that they increased their commercial loan loss reserves by over 100% .  This tells me they are anticipating many more losses going forward from their commercial loan inventory. Business Journals, Washington D.C.: The company’s $221 million third quarter loan loss provision, which it set aside [...]

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“Double Bubble” means the commercial real estate is next to pop

October 23, 2009

Editor’s Note: The calls are getting louder with MSNBC taking about the impending collapse of the U.S. commercial real estate market.  In the article they quoted that in 2006, 54% of the regional and local banks portfolios were made up of commercial loans compared to only 40% a decade before. With values declining, many commercial [...]

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Regulators give guidence to banks on troubled commercial real estate loans

October 15, 2009

These banks are going to need to start restructuring these deteriorating commercials loans or risk defaults and even larger write-downs.  That will lead to the FDIC stepping in and closing the bank.  I am surprise the banks are not lobbying Congress more loudly to get a program in place to refinance these loans. The problem [...]

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Capmark Financial preparing for bankruptcy soon

October 13, 2009

Editor’s Note:  After reading the tone of this press release, it comes to my attention that this bankruptcy might of been part of the plan so they could reorganize the debt and later down the line become profitable because the debt was at a much more manageable level.  It would be hard to believe with the [...]

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Commercial real estate to drive more U.S. bank failures

October 13, 2009

Editor’s Note: The drumbeat is getting louder for commercial real estate being the next leg down.  If you have followed this site since it went online, it said been repeated over and over again.  Many local and regional commercial banks are taking huge losses on their commercial loan portfolio because of defaults on behalf of [...]

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Goldman Sachs to Issue Commercial-Backed Debt Through TALF Program

October 9, 2009

Bloomberg, New York – Goldman Sachs Group Inc. may sell the first commercial-mortgage bond since June 2008, taking advantage of an untapped Federal Reserve program. The five-year, $400 million loan to Developers Diversified Realty Corp. made by a unit of the New York-based bank is secured by 28 shopping centers. Developers Diversified Realty Corp. It [...]

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Federal Reserve states banks are slow to realize commercial real estate losses

October 7, 2009

Editor’s Note: Last night on Jim Lehrer’s News Hour, they had a special on commercial real estate in New York City.  It was quite a bleak picture.  The commercial broker they walked around to various commercial develops said that many buildings are over 50% vacant.  He went on to show a building that was financed [...]

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U.S. Commercial Paper Market Up $19.7 Billion This Week But Still Down 50% From Peak

October 2, 2009

Editor’s Note: This is promising data showing investor’s appetite for corporate debt and signs that companies are preparing for a recovery.   Job numbers can out today and surprised the analysts by raising the unemployment rate to 9.8%.  Interesting that the market is still down by about 50% to $1.08 trillion from the peak at $2.2 [...]

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