Author Topic: Banks to report 'shocking' results as real estate problems pile up  (Read 380 times)

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Offline jmyrlefuller

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https://webcache.googleusercontent.com/search?q=cache:diSG_UaLUZsJ:https://www.crainsnewyork.com/finance/banks-report-shocking-results-real-estate-problems-pile+&cd=1&hl=en&ct=clnk&gl=us

by Aaron Elstein
July 10, 2020

“The upcoming results will be confusing, sloppy and shocking,” said analyst Gerard Cassidy of RBC Capital Markets.

Apart from the obvious difficulties posed by unemployed borrowers falling delinquent on their credit cards or student loans, stress is cropping up in commercial real estate—a massive asset class, accounting for 17% of all bank loans and $5 trillion worth of debt. At M&T Bank, commercial real estate accounts for 36% of loans.

One sign of brewing trouble can be seen in the hotel and retailer loans going to “special servicing,” the financial world’s version of the intensive-care unit. The numbers jumped to $21 billion by the end of May from less than $4 billion in March, according to Fitch Ratings.

“Dark clouds are forming,” Evercore ISI analyst John Pancari warned in a recent report.

(excerpt)
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Re: Banks to report 'shocking' results as real estate problems pile up
« Reply #1 on: July 11, 2020, 01:54:07 am »
Quote
“The upcoming results will be confusing, sloppy and shocking,”

Strange way for a banker to talk about bankruptcy,and that IS where almost all of them are headed. Homes they have financed for $300,000 will be going unsold for 30 thousand because the economy is going to crash and the only people who will have any cash to be buying with will be the very people who engineered it,the International Bankers.

Deys juz mak-in a "Adjustment",dats all.
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Re: Banks to report 'shocking' results as real estate problems pile up
« Reply #2 on: July 11, 2020, 03:09:20 am »
My nephew is a partner in a New York City outfit that owns 116 properties.

Nobody is paying rent.

How do you even begin to prepare for something like this?   We all ...or at least my family did...have parents warn us to be able to handle unexpected adversities that might come up.

He recently visited my brother (his dad) for the July 4th weekend.  He went into the den/office at 8:30am and didn't come out until 6pm.
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