Monday, August 24, 2009

Commercial real estate portfolios

Hat tip to BR at The Big Picture for posting this list of commercial real estate exposure. This is a great list because it shows the serious risk for some banks (Wells Fargo, Metlife, Regions seem to jump off the page), while showing a relatively small commercial loan portfolio for others (Citi and JPMorgan have surprisingly low exposures).

One that jumps off the page to me is M&T bank out of Buffalo. Remember all of those new stripmalls that seemed to pop up in Watertown in the last 3 years. I don't know if any of them were financed by M&T but those were the bread and butter loans for M&T over the past 10 years.

Also consider - US Banks Face More Losses from Commercial Real Estate

The head of SunTrust Banks Inc., Georgia’s biggest lender, said U.S. financial institutions probably will report further credit losses as commercial real estate falters through next year.
“The industry is a long way from declaring any sort of victory, especially regarding credit issues,” Chief Executive Officer
James Wells III said today in a speech to the Rotary Club of Atlanta.

Two more quick thoughts:

1) One of the lottery jackpots has grown to over $200 million (remember after taxes and present value calculations you're talking about $50 million to the winner if there is only one winner). Please resist the urge to throw your money away. If you really don't like your money put it through a shredder and make some bedding for your pet rabbits.

2) Cash for clunkers ends tonight so what are the odds GM rolls out a Cash for Clunkers ad campaign on Wednesday? I'd say the odds are at least 50/50 :)


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