Sunday, September 27, 2009

FDIC tight the screw on CRE?

Bond Girl:
"Not sure how true this is, but a banking acquaintance said that the FDIC is trying to get banks to change their valuation on some performing loans (he wasn't specific, but it was in the context of a discussion on CRE) to be more conservative. Says banks are pretty upset about it."

Terry:
"A loan may be performing but still have a significant risk of impairment - true, banks did not have to revalue a loan until it defaulted, but this mark to market move is happening."

jasap:
"Friend of mine is a community bank director. She said they are trying to force them to mark to market all the CRE loans. Which will put them under."

More evidence:

http://www.fincriadvisor.com/2009-09-27/CREconcentrations

http://www.costar.com/News/Article.aspx?id=67A183B2278C8088B2C11F65A68C3284


in reference to: Freddie Exec Compensation, Bandos, Market and more | Hoocoodanode? (view on Google Sidewiki)

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