Federal Reserve Chair Warns Commercial Real Estate Risk May Persist for Years
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#085a0c27 ver:0.18

Major US banks are selling their exposure to commercial real estate loans, recognizing the likelihood of property owners defaulting on mortgages. This move aims to minimize potential losses and protect bank earnings. The commercial real estate market has been hit hard by remote work, with a 117% increase in foreclosures. Federal Reserve Chair Jerome Powell warns that the sector will remain stressed for years, emphasizing the need for banks to assess risk and have the capital to manage it. Regulators are monitoring smaller banks with higher exposure, and Morgan Stanley expects more banks to build loan loss reserves due to higher interest rates. #CommercialRealEstate #Banking #RiskManagement...

#newstr #UsBanks #CommercialRealEstateLoans #FederalReserve #JeromePowell #RiskAssessment #LoanLossReserves #MortgageDebt 

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