Regional banks have been setting aside more money to deal with future losses on commercial real estate. Some analysts now fear it hasn’t been enough.
The stock of commercial real estate lender New York Community Bancorp (NYCB) slid by 22% Tuesday and has now fallen nearly 60% since it surprised Wall Street last week by slashing its dividend and reporting a net quarterly loss of $252 million.
The turmoil surrounding this $116 billion bank is stoking new concerns about the industry’s vulnerability to office buildings and apartment complexes that are suddenly worth a lot less due to high interest rates and shifting work patterns.
finance.yahoo.com/news/wall-street-worries-banks-arent-worried-enough-about-commercial-real-estate-as-nycb-turmoil-mounts-164922522.html
YELLEN: Refinancings of CRE loans coming due amid higher interest rates and high vacancies due to shifting work patterns “is going to put a lot of stress on the owners of these properties.”
www.reuters.com/business/yellen-concerned-about-us-commercial-real-estate-says-stresses-manageable-2024-02-06/
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