HuffPost's QuickRead... ShareBox.ad = function (tag_id){if ($(tag_id) == undefined) return; if ($(tag_id).innerHTML != '') return;ad_spec = {"zone_info": "huffpost.business/news;business=1;entry_id=818605;business-news=1;commercial-real-estate=1;congressional-oversight-panel=1;cre=1;federal-reserve=1;patrick-parkinson=1","ord": 1296854857,"tile": 3,"width": 300,"height": 250,"el_id": tag_id + "_js","class_name": "ad_block ad_wide top","type": "iframe"}HuffPoUtil.WEDGJE.write(ad_spec, tag_id);};Loading... HuffPost's QuickRead... 
Loading... BIG NEWS:Unemployment|Financial Crisis|Housing Crisis|The Watchdog| Smarter Ideas| More... | LogoutLog In| Sign Up The Huffington Post February 4, 2011 Front PagePoliticsBusinessMediaEntertainmentComedySportsStyle WorldGreen Food TravelTech LivingHealth Divorce Arts Books Religion Impact Education College NY LA Chicago Denver Blogs#ad_curtain {height:auto;margin:10px auto 0;width:938px} Commercial Real Estate Still A Strain: Fed Official
First Posted: 02/ 4/11 09:43 AM Updated: 02/ 4/11 09:43 AM
InspiringGreedy
Typical
Scary
Outrageous
Amazing
Innovative
Infuriating
Read More:Business News, Commercial Real Estate, Congressional Oversight Panel, Cre, Federal Reserve, Patrick Parkinson, Business Newsshare this story
Patrick Parkinson, the Federal Reserve's director of banking supervision and regulationGet Business AlertsSign UpSubmit this storydiggredditstumble 
WASHINGTON (Reuters) -- A top government financial regulator said on Friday banks have taken only about half the hit they will experience from commercial real estate losses, and that while banks will remain under strain from commercial properties, no systemically important firms appear at risk.
"While we expect significant ongoing CRE-related problems, it appears that worst-case scenarios are becoming increasingly unlikely," Patrick Parkinson, the Federal Reserve's director of banking supervision and regulation, told Congress.
Parkinson is due to testify before the Congressional Oversight Panel that is reviewing efforts to stabilize the financial system after the financial crisis of 2008-2009. A copy of his testimony was obtained by Reuters.
Parkinson said that since the beginning of 2008 through the third quarter of 2010, commercial banks had incurred almost $80 billion of losses from commercial real estate exposures. Banks are estimated to have taken roughly 40 percent to 50 percent of losses they will incur over this business cycle, he said.
"Even if CRE delinquency metrics continue improving, there remains a sufficiently large overhang of distressed CRE at commercial banks such that loss rates for this portfolio will likely stay high for some time and many banks with CRE concentrations will remain under stress," he said.
Parkinson said that some systemically important financial firms had large exposures to commercial mortgage-backed securities and derivatives such as commercial real estate collateralized debt obligations. However, he said risks in those areas had been reduced and significant markdowns had already been applied to those securities.
Banks with high concentrations of commercial real estate loans tend to be those with between $1 billion and $10 billion in assets, of which one third had high concentrations of such loans, he said. Among banks with $10 billion or more, 10 percent had high concentrations of commercial real estate loans.
Story continues below blockquote .mid_article_ad_label{border:1px solid #dddddd;}Advertisement"CRE concentrations are not a significant issue at the largest banks," he said.
However, Parkinson said losses due to commercial real estate, particularly residential construction and land development lending, were a chief reason for the high number of bank failures since 2008. Regulators expect further bank failures due to commercial real estate losses over the next few years, he said.
Regulators are encouraging loan restructuring to reduce losses, he added.
Copyright 2010 Thomson Reuters. Click for Restrictions.
Get HuffPost Business On Twitter and Facebook! Know something we don't? E-mail us at huffpostbiz@gmail.comThe Fed WASHINGTON (Reuters) -- A top government financial regulator said on Friday banks have taken only about half the hit they will experience from commercial real estate losses, and that while banks will... WASHINGTON (Reuters) -- A top government financial regulator said on Friday banks have taken only about half the hit they will experience from commercial real estate losses, and that while banks will... Related News On Huffington Post:
BancAlliance: Former Treasury Advisor Starting Company That Could Help Small Banks Fed Directors Banks Lavished With Billions From Fed
BancAlliance: Former Treasury Advisor Starting Company That Could Help Small Banks
Fed Directors Banks Lavished With Billions From Fed
William K. Black: Congress Threatens to Sow the Seeds of Our Next Banking Crisis
Jake_Bernstein #COP hearing consensus testimony. On commercial real estate we've hit or are near bottom but will likely be bumping along at bottom awhile. 4 hours ago from TweetDeck Jake_Bernstein Testimony at #COP hearing. Commercial real estate debt maturities will climb to approximately $350 billion per year between 2011 and 2013. 5 hours ago from TweetDeck 
Reuters_Biz Commercial real estate still a strain: Fed official http://dlvr.it/Fp7Q0 7 hours ago from dlvr.it 
sanjoserealtime Largest Silicon Valley real estate markets during:: Valley focus "º"º commercial real estate COMMERCIAL REAL EST... http://bit.ly/hypAFE 22 hours ago from twitterfeed 
VentureOutlook SVSJBusJournal: Forecast sees commercial real estate upswing by 2013 http://bit.ly/e09s34 Full http://bit.ly/hbxYtn 1 day ago from WebPartner sanjoserealtime Forecast sees commercial real estate upswing by 2013: California office and industrial markets are showing signs... http://bit.ly/emQM6z 1 day ago from twitterfeed 
memphisdaily Daily News Commercial Real Estate Seminar Feb. 17, 3:30pm, Brooks Museum, $25. #memphis http://ow.ly/3Pe1F 1 day ago from HootSuite Show more results TOP INFLUENCERS ON THIS TOPIC 56 54 38 34 TOP LINKS ON THIS TOPIC 1 of 5 Commercial real-estate lending stronger in Denver than rest of nation - Denver Business Journal:
Real Estate Briefs: Michael Daly joins LandQwest Commercial | news-press.com | The News-Press
Commercial Real Estate Continues To Cast Shadow Over US Banks
Commercial real estate investment firm moves from Bay Area to Reno | rgj.com | Reno Gazette-Journal
Commentaries » Blog Archive » Commercial real estate loans grow more distressed | Blogs |
Commercial Real Estate in CT - Business is Good By Scott Belan At Isnare.com Ezine Articles
New York Observer Launches A New Newspaper
UK Commercial Real Estate Recovery Signs
New Zealand Commercial Real Estate Attracting Renewed Investor Interest
Where is the CRE/CMBS crash? - Jun. 8, 2010
US Commercial Real Estate Transactions Surge In Second Quarter
Around the Web: Commercial real estate still a strain: Fed official
CoStar Sells Washington, DC Building in Sign of Commercial Rebound
Greedy
Typical
Scary
Outrageous
Amazing
Innovative
Infuriating
More in Business...
Missing Workers: 4.9 Million Out Of Work...Post-Katrina New Orleans Richer, Whiter, Emptier, Census...Debt Ceiling Debate Intensifies, As Deadline ApproachesBuddhist Economics? Raj Patel Suggest A New... Comments 2 Pending Comments 0 View FAQ 
Login or connect with: More Login OptionsLogin with: Google Account Huffpost Account Yahoo AccountYou must be logged in to comment.Post CommentPreview CommentTo reply to a Comment: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to.Share your Comment:
Post to Facebook.Post to Blogger.Post to Twitter.Post to WordPress.Post to TypePad.Post to Tumblr.Post to Yahoo! View All Recency | Popularity ta8ersalid 0 minute ago (2:53 PM) 84 Fans "CRE concentrations are not a significant issue at the largest banks," he said.If you believe the above, I have a bridge for sale, going cheap. ta8ersalid: "CRE concentrations are not a significant issue at the largest http://www.huffingtonpost.com/social/ta8ersalid/commercial-real-estate-st_n_818605_76309327.html Permalink | Share it
HUFFPOST SUPER USER jwilson1 3 hours ago (12:18 PM) 58 Fans 1/2 of the losses...you people are disgusting when you think of the millions of decent folks who lost their home through no fault other then the banks issuing CDO's. These banks have a big debt to pay instead of the trillion they lost the American people. Your article sucks it should be about the fraud they did not the money it cost them how about the global melt down they caused! jwilson1: 1/2 of the losses...you people are disgusting when you think http://www.huffingtonpost.com/social/jwilson1/commercial-real-estate-st_n_818605_76289331.html Permalink | Share it New comments on this entry — Click to refresh
Loading comments… Follow Huffington Post 
Loading twitter module... Most Popular on HuffPostadYQBqpv2JPt0kS7hFlIdQijVx4eQxBhnJ2awIiJzVo6TEpYjTSy9eV5uEjrPD3tYotxxID4gBGfwPbMVr%2F%2FXw%3D%3DWv1Rs2sm35E8Zlyxm8BDMq4djlnFQECVjca0OPNpVycSJB6I1XBmKuc%2FwB3SQv2Jz9cXSfNc5tOT09CxLbQyIA%3D%3D1 of 2 Anderson Cooper Attacked By Pro-Mubarak MobRecommend12K
Scarlett Johansson In Tears At Ryan Reynolds Dinner: ReportLike83
Halle To Gabriel: 'You Were Only Good For One Thing'Like511
Dan Rather Come Write-In, SenatorLike171
Controversy Remains After Priest's Confession Of Sexual Indiscretion During ExorcismLike982
5 Signs It's Time To Get DivorcedLike177
Egypt Army Moves In As Protesters Clash With Mubarak SupportersRecommend886
Obama Administration Scores Legal Victory On Health CareLike3K
Nicole Kidman: 'I Was Damaged' After Tom Cruise DivorceLike24 Don't Miss HuffPost Bloggers1 of 5
Dylan Ratigan A Mortgage Isn’t a Life SentenceSen. Richard Blumenthal GOP Dials Back the Clock on Progress for WomenSec. Kathleen Sebelius Making Progress Towards Covering All Uninsured ChildrenJosh Brolin Remembering Howard ZinnWallace Shawn Why I Call Myself a Socialist: Is the World Really a Stage?Al Gore An Answer for Bill O’ReillyRep. Dennis Kucinich A Call for an Unequivocal Statement of Solidarity With the Egyptian PeopleMandy Moore The Second Leading Cause of Death in Young WomenAlec Baldwin John Barry: Remembering One of the GreatsMichael R. Bloomberg Undercover at an Arizona Gun ShowHot Trends 1. Harry Potter2. Mark Madoff3. Nails Investments4. Allstate Zodiac5. Fannie Mae Follow Huffington Post Today's MarketsLoading..S&P 500NASDAQNYSEGainersLosersMost ActiveSEARCH WIKINVEST POWERED BY
Wikinvest data is provided as-is, delayed, and subject to Terms TOP VIDEO PICKS1 of 8 Unemployment Falls to 9.0%, Only 36K New Jobs Unemployment Expected to Keep Rising LVMH sees record sales in 2010 var ndn_max_page = 8;var ndn_entries = [[{'title':'Unemployment Falls to 9.0%, Only 36K New Jobs', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317663&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317663.jpg'},{'title':'Unemployment Expected to Keep Rising', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317649&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317649.jpg'},{'title':'LVMH sees record sales in 2010', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317650&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317650.jpg'}],[{'title':'Japan steel industry hot on merger', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317620&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317620.jpg'},{'title':'The battle to prevent cyber war', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317608&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317608.jpg'},{'title':'Bernanke: Economy Better; Budget Unsustainable', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317518&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317518.jpg'}],[{'title':'UK shops bank on Chinese customers', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317505&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317505.jpg'},{'title':'Shell's $5.7bn profit disappoints', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317485&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317485.jpg'},{'title':'Shell profits double to $18.6bn', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317436&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317436.jpg'}],[{'title':'Barbie still boosting Mattel sales', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317433&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317433.jpg'},{'title':'Q4 results 'ahead of expectations'', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317428&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317428.jpg'},{'title':'Sony profit falls', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317418&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317418.jpg'}],[{'title':'News Corp launches iPad newspaper', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317371&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317371.jpg'},{'title':'Citigroup takes over EMI', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317289&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317289.jpg'},{'title':'U.S. hiring trends improving', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317285&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317285.jpg'}],[{'title':'GM, Chrysler, Report Big Jan. Sales Gains', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317120&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317120.jpg'},{'title':'Dow Closes Above 12,000', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23317126&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23317126.jpg'},{'title':'Egypt protests hit oil and markets', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23316841&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23316841.jpg'}],[{'title':'Consumer Protections to Arrive This Summer', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23316834&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23316834.jpg'},{'title':'Facebook Deals comes to Europe', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23316825&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23316825.jpg'},{'title':'Casino tycoon drops lawsuit', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23316815&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23316815.jpg'}],[{'title':'Ryanair defends boarding pass charge', 'entry_url':'http://www.huffingtonpost.com/newsinc/landing_page.html?vid=23316773&cid=504&freewheel=90057&sitesection=huffingtonpost', 'img_url':'http://thumbnail.newsinc.com/23316773.jpg'}]];var ndn_pagination = new CommonPaginator({'moduleName': 'ndn', 'maxPage': ndn_max_page, 'is_circle': true, 'is_custom_data': true, 'custom_data': ndn_entries, 'custom_img_width': 74, 'custom_img_height': 54, 'custom_play_button': true});HuffPoUtil.ImageLoader.foldCheck("hp_ndn_page_1"); MOST DISCUSSED RIGHT NOW 
Missing Workers: 4.9 Million Out Of Work And Forgotten
Learning To Walk: Fear, Shame And Your Underwater MortgageHOT ON FACEBOOK
John Taylor Skilling Dead: Jeff Skilling's Son's Body Found In ApartmentRecommend120
Bernie Madoff's Relationship With JPMorgan Should Shock No OneLike125
HOT ON TWITTER RT @markivey Very troubling- desperate unemployed workers who give up, 4.9 million "forgotten" ( http://huff.to/gzDEiM ) 
markivey Very troubling- desperate unemployed workers who give up, 4.9 million "forgotten" ( http://huff.to/gzDEiM ) RT @livestrongceo Co-wrote this new piece for @HuffingtonPost on World Cancer Day 2011 - http://huff.to/foC2xq 
livestrongceo Co-wrote this new piece for @HuffingtonPost on World Cancer Day 2011 - http://huff.to/foC2xq 
Enter Keyword(s): Enter a City: Select a State: ? All United States ? Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Select a Category: ? All Job Categories ? Accounting Admin & Clerical Automotive1 Banking1 Biotech1 Broadcast - Journalism1 Business Development Construction Consultant Customer Service Design Distribution - Shipping Education Engineering Entry Level Executive Facilities Finance General Business General Labor Government Health Care Hotel - Hospitality Human Resources Information Technology Insurance Inventory Legal Legal Admin Management Manufacturing Marketing Nurse Other Pharmaceutical Professional Services Purchasing - Procurement QA - Quality Control Research Restaurant - Food Service Retail - Grocery Sales Science Skilled Labor - Trades Strategy - Planning Supply Chain Telecommunications Training Transportation Warehouse
HUFFPOST'S BIG NEWS PAGES
Kim Kardashian Loves 'W Magazine' Nude PhotosThe Kardashians Halle Berry's Ex Gabriel Aubry: Don't Call Nahla Black!: ReportHalle Berry Jeanie Buss On ' Real Housewives'? Lakers Exec In Talks With Reality ShowLA Lakers Duke Prez To Students: 'Think Hard, Play Well'The South Where To Watch Super Bowl Sunday In LALA Around Town Blizzard Mystery: Todd Bieber Still Searching For Owner Of Found Footage (VIDEO)Brooklyn John Boehner Rejects C-Span Offer To Increase TransparencyJohn Boehner Super Bowl 2011 Time, Location, Info (PREDICT THE WINNER)Predict the News Georgia State Lawmaker Seeks To Redefine Rape Victims As 'Accusers'Women's Rightsmore big news pages » Front PagePoliticsBusinessMediaEntertainmentComedySportsStyleWorldGreen Food TravelTech Living Health Divorce Arts Books Religion Impact Education College NY LA Chicago Denver BlogsAdvertise | Make HuffPost your Home Page | RSS | Careers | FAQ | Contact UsUser Agreement | Privacy | Comment Policy | About Us | Powered by Movable TypeCopyright © 2011 TheHuffingtonPost.com, Inc. | "The Huffington Post" is a registered trademark of TheHuffingtonPost.com, Inc. All rights reserved.
HuffPost Lightbox 
No comments:
Post a Comment