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A US Government Rescue for Commercial Real Estate?

|Includes: BAC, C, CMA, KEY, MI, RF, STI, Wells Fargo & Co. (WFC), ZION

Fox Business' Elizabeth MacDonald wrote an interesting article on the state of commercial real estate mortgages and the TALF and PPIP programs.  Some highlights:

  • $1.4 trillion of CRE loans are maturing in the next 5 years.
  • An estimated $165-$204 billion will mature this year.
  • There isn't enough capital strength on banks and insurance companies' balance sheets to refi the loans.
  • The CMBS market is, for the moment, virtually stalled.
Issues mentioned in the article include WFC, C, BAC, RF, STI, KEY, MI, ZION, CMA.

For the full article, click here.