Category: Banks

Big banks are more at risk of a commercial real estate meltdown than people think, new study says

Commercial real estate properties could be in for another 10% decline this year, Capital Economics estimated. Gary Hershorn/Getty Images Big lenders are more exposed to commercial real estate than it might seem at first glance, a study says. In addition to lending to property owners, big firms also offer indirect lending to REITs, raising their exposure by about 40%. Wall Street has been worried about…

Billionaire Barry Sternlicht predicts weekly bank closures as the real estate sector battles high interest rates and inflation

Craig Barritt/Getty Images Billionaire Barry Sternlicht is worried about America’s regional and community banks. Sternlicht told CNBC that banks may bear the consequences of the real estate crisis. Only one bank has closed so far this year, but Sternlicht said more could be coming. Billionaire Barry Sternlicht offered an ominous prediction about America’s regional banks amid a coming commercial real estate reckoning. The Starwood Capital…