Largest U.S. Banks Have Most Toxic Commercial Real Estate Exposure

Largest U.S. banks have most toxic commercial real estate exposure.

While it is true that smaller banks in the United States are the vehicle through which a bulk of commercial real estate loans are made, many of the nation's largest banks are also drowning in debt from delinquent CRE loans.

The nation's six largest banks saw delinquent commercial property loans nearly triple in 2023 due to high vacancy rates and ever-increasing borrowing costs.

These big banks are offsetting this growing risk by gobbling up smaller in-trouble banks.

"The bank brought in a $1 billion infusion of capital as a lifeline after growing concerns about the state of its commercial real estate loan portfolio."

On average among the big banks, CRE loans account for just 11 percent of overall loan portfolios, which means these guys are more insulated than the smaller regional banks that are much more likely to fail as the CRE sector collapses.

Back in 2008 during the last major financial crisis, it was housing that did in the banking industry, which was followed by taxpayer-funded bailouts after politicians decided that the big banks were "Too big to fail." Once the CRE collapse really gets going, it remains to be seen how the establishment tries to bail out the corrupt money changers once again. 

https://www.naturalnews.com/2024-03-26-us-banks-toxic-commercial-real-estate-exposure.html