The Feds “stress tested” the 23 largest banks and discovered $1.2 Trillion of unrealized losses. The looming concern is commercial real estate, yet those top 23 banks only hold $1.5 trillion of all CRE on their books.
Allegedly, it’s nothing to worry about. These banks have the cash to offset their losses. What about the regional/community banks that hold nearly 70% of all commercial real estate?
Bidenomics is working very well if the goal is to crash our capitalist economy and transform us into socialists/communists.
People are still clearly worried about regional banks. The market response to a surprise loss at NY Community Bancorp, with Treasury yields plunging and a drop in broader stocks, hints at deeper concerns about commercial real estate & smaller banks. https://t.co/TpQV45AyvL pic.twitter.com/p9Lie6Oc21
— Lisa Abramowicz (@lisaabramowicz1) January 31, 2024
-
The Importance of Prayer: How a Christian Gold Company Stands Out by Defending Americans’ Retirement
NY Community Bancorp and Aozora
According to Bloomberg, following a profit warning from New York Community Bancorp on Wednesday due to ongoing problems in the commercial real estate sector. Japan’s Aozora Bank slashed the value of some of its US office tower loans by more than 50%.
Aozora Bank is the 16th largest bank in Japan by market value. The bank saw its shares plunge by 20% on Thursday after reporting a net loss of 28 billion yen ($191 million) for the fiscal year. This starkly contrasted its earlier projection of a 24 billion yen profit.
Aozora wrote down the value of its non-performing office loans by 58%, including a 63% reduction in Chicago and between 51% and 59% in New York, Washington D.C., Los Angeles, and San Francisco – all of these cities are plagued with violent crime and controlled by radical Democrats, as Zero Hedge reports.
The bank’s US office loans totaled about 6.6% of its portfolio, or approximately $1.89 billion. It said 21 office loans worth $719 million were classified as non-performing, and as a result, it increased its loan-loss reserve ratio on US offices to 18.8% from 9.1%.
BREAKING: 14% of all commercial real estate (CRE) loans and 44% of office building loans are now in “negative equity.”
In other words, the debt is now greater than the property value on all of these properties.
Currently, US banks hold over $2.9 trillion of CRE debt, the… pic.twitter.com/5lCkBwWxTe
— The Kobeissi Letter (@KobeissiLetter) January 25, 2024
Harold Bordwin, a principal at Keen-Summit Capital Partners LLC in New York, specializes in renegotiating distressed properties. He said, “Banks’ balance sheets aren’t accounting for the fact that there’s lots of real estate on there that’s not going to pay off at maturity.”
Justin Onuekwusi, chief investment officer at wealth manager St. James’s Place, warned:
“It’s clear that the link between commercial property and regional banks is a tail risk for 2024, and if any cracks emerge, they could be in the commercial, housing, and bank sectors.”
Just in: “Banks hit by real estate risk” (because of the Evergrande collapse…)
Bruce Van Saun CEO Citizens financial group on Bloomberg – lying…
“We’re over the banking difficulties we saw last year.” This is a lie – NYCB just failed yesterday.
“The NYCB news yesterday… pic.twitter.com/KHSphwCeir
— BuyTheCryptoDip (@BuyTheCryptoDip) February 1, 2024
Subscribe to the Daily Newsletter
