Commercial Real Estate May Set Off 2nd Crisis

(NEWSER) - Commercial real-estate borrowers are defaulting on their loans at an ever-faster pace, and experts now believe the crisis could match or exceed the early-1990s slump, the Wall Street Journal reports. That catastrophe killed off 1,000 banks and savings institutions, with lenders taking $48.5 billion in charges. This time, one firm estimates, as much as $250 billion could be lost, resulting in more than 700 bank failures. More»

Many are already insolvent, and feds will need a bolder plan

(NEWSER) - In the corridors of Wall Street and Washington, a worrying consensus is growing: Some of the nation's largest banks are in fact insolvent. If banks reassessed the value of the complex mortgage-backed securities that taint their balance sheets, they would outweigh all assets on hand, writes Steve Lohr of the New York Times. For some experts, that means that only full-scale nationalization and a sell-off of the toxic debts can end the crisis. More»

Some $530B in commercial mortgages will need refinancing—and credit is tight

(NEWSER) - Developers worried about the health of the commercial real estate market want a piece of the bailout action, the Wall Street Journal reports. They say $530 billion in commercial mortgages will be up for refinancing in the next 3 years, but credit “simply is not available.” Without government help, trade groups predict a surge in bankruptcies and foreclosures. More»

Tight credit market, falling profits hurt paper

(NEWSER) - Facing declining profits and tight credit, the New York Times is looking to raise $225 million by borrowing against the 58% share the company holds in its new Renzo Piano-designed skyscraper in Times Square, the paper reports. The Times hopes to either take out a mortgage on the 52-story building completed last year or arrange a sale-leaseback deal. More»

Fed chief outlines ideas for public, private sector to slow foreclosures

(NEWSER) - Ben Bernanke says more must be done to halt record US home-foreclosure rates, the New York Times reports. The Federal Reserve chief suggested several options today, including the government buying bad mortgages en masse and refinancing them through a government-insured program, and strengthening a scheme aimed at lowering homeowners’ monthly payments. More»