16 posts tagged “banks”

With 54% of delinquent loans in Fitch-rated transactions moving from 30 days to 60 days in the last month, Fitch Ratings has placed 238 commercial mortgage backed security (CMBS) bonds — valued at $9 billion — on Rating Watch Negative (RWN) as part of its ongoing review of the CMBS portfolio according to a CPN article. The downgrades are the result of loss expectations and reflect Fitch's prospective views regarding commercial real estate market value and cash flow declines.

"Fitch believes that the global economic downturn is now close to its trough," Bridget Gandy, managing director of Fitch Ratings' financial institutions team, said in a statement. "Nevertheless, banks globally will continue to operate in a tough environment, as loan impairment charges rise as more companies default and unemployment rates continue to worsen," she continued.

For more news and information, visit Blumberg Capital Partners.

Philip Blumberg sat down with Jeanne Yurman of Reuters on June 23rd for a Commercial Real Estate report. 

Blumberg Capital Partners says commercial real estate "will be another real stomach blow" to commercial banks where writedowns could be more than 50-percent.

Philip Blumberg, speaking at the 2009 Global Real Estate Summit in New York, says "it's no wonder why these commercial banks aren't lending." Separately, Blumberg says he expects to make some investments in the London property market where "they've taken writedowns and are closer to the bottom."

For more information, visit Blumberg Capital Partners.

Blumberg Capital Partners was featured today in a New York Post article, "Banks Worry About Next Wave of Loan Defaults".

An excerpt:

Phillip F. Blumberg, chairman of Blumberg Capital Partners, thinks banks are really worried about the commercial real estate loans they issued during the orgasmic 2000s. That’s the reason, says Blumberg, banks are remaining conservative in their lending.

Credit cards may be bad but commercial real estate is worse.

"It’s absolutely frightening," says Blumberg, who adds that he sold most of his real estate holders before the bust. And the most dangerous time for banks will be 2010 to 2013 when $1 trillion in commercial real estate loans will mature and — like homeowners before them — owners of commercial properties will need to refinance.

To read the rest of this article, click here.

How Do the Markets Relate? Philip Blumberg of Blumberg Capital Partners comments on how problems in the residential market can -- and do -- effect other markets.  For more news and information, visit Blumberg Capital Partners.

Now is not the time to buy: Philip Blumberg of Blumberg Capital Partners suggests that people probably shouldn't buy real estate now with a few exceptions.  For more real estate news and information, visit Blumberg Capital Partners.

The Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. announced this weekend that it would provide a multibillion-dollar backstop for Citigroup.  In agreeing to protect Citigroup against potential losses on a $306 billion pool of troubled assets, the government made clear that it was not going to allow one of the nation's largest financial firms to collapse.

Citigroup will absorb the first $29 billion in any further losses on these assets, which are primarily securities backed by mortgages and commercial real estate loans, with the government stepping in to cover most of the losses beyond that amount. The distressed assets would be fenced off by Citigroup from the rest of its holdings, allowing the firm to insulate itself from the fallout.  In return, the government is to receive up to $7 billion in preferred shares.  Citigroup is the largest U.S. bank by assets, with $2 trillion on its books, but has incurred billions of dollars in losses in the past 18 months partly due to repackaging bad loans into what were viewed as safe securities.

As a condition of the emergency assistance, the company will have to adhere to new restrictions on what it pays its executives and carry out an FDIC program to help homeowners avoid foreclosure.  According to a Washington Post article, Citicorp will begin reaching out this month to an estimated 500,000 customers who are not currently delinquent but who appear to be at risk — either because their credit files show telltale signs of financial stress or because their homes are in markets Citicorp classifies as facing serious economic strains and job losses in the coming year.

For more real estate news and information, visit Blumberg Capital Partners.