Yes. Since I work in banking I can tell you its mostly local and regional banks which made these loans. Commercial Real Estate was considered to be the gold standard in terms of reliable returns even if they weren’t the highest rates of return. Everything has been upended obviously. Several local and regional banks are going to end up insolvent when the scale of the losses is revealed as long term corporate leases run out on many of these buildings.
That’s unfortunate. I wish it were Chase and BofA and Citi, etc taking it in the shorts instead of the small and medium sized banks but..........
Yes, because Chase, BOA and Citi will end up owning those regional banks when it is all done.
I am one of about 220 share holders of a small bank in NH. It was started by my former boss and our former landlord. So, both of them are on the board along with several other area business people. They are in the process of their third stock offering/capital raising process. The main thing that was discussed was their exposure to potentially bad commercial real estate loans. Which is minimal. It is primarily a bank that loans money to local businesses. They also have two branches.