Geithner: Commercial Troubles Can Be Managed
April 8, 2010
Source: Associated Press, Marcy Gordon
Failing commercial real estate loans will continue to plague both the U.S. government and banks, Treasury Secretary Timothy Geithner said Monday. "But we can manage through this process," he added.
U.S. banks are facing as much as $300 billion in losses on loans for commercial property and development, according to the Congressional Oversight Panel. Losses on retail and office complexes have been especially troublesome.
Sheila Bair, chair of the Federal Deposit Insurance Corp., says losses on commercial real estate loans are expected to force more than 140 banks into collapse in 2010.