The COP's findings on Commercial Real Estate

[plditallo]

OK, CrediCopers--get ready for the next shoe to drop! Here's a quote taken directly from the COP website:

"The Congressional Oversight Panel's February oversight report, "Commercial Real Estate Losses and the Risk to Financial Stability,"
expresses concern that a wave of commercial real estate loan losses
over the next four years could jeopardize the stability of many banks,
particularly community banks. Commercial real estate loans made over
the last decade - including retail properties, office space, industrial
facilities, hotels and apartments - totaling $1.4 trillion will require
refinancing in 2011 through 2014. Nearly half are at present
"underwater," meaning the borrower owes more on the loan than the
underlying property is worth. While these problems have no single
cause, the loans most likely to fail are those made at the height of
the real estate bubble."

Enough said!:-(

Read the whole report here (attached pdf file) -- and watch Elizabeth Warren's presentation!