Troubled Commercial Real Estate Fixes Are Half Done

It will take two to four more years to resolve bad commercial property debt built up since the financial crisis of 2008, analysts estimate.


The task is taking so long amid an "extend and pretend" policy that lets banks carry toxic loans on their books. It's what has so far prevented a more severe commercial real estate meltdown, according to a number of industry observers.

They maintain that defaults peaked in 2009, and warn that property values now stabilizing could begin falling again if regulators start pressuring banks to reconcile nonperforming loans faster.

Read the entire article Troubled Commercial Real Estate Fixes Half Done