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US regional banks to face increased scrutiny as #CRE exposure stifles buybacks | Reuters https://t.co/IirwA7VkI6
Great, detailed briefing note on US banks vulnerable to failure due to Commercial Real Estate losses from the @OFRgov yesterday. TL;DR - lots of banks are in BIG trouble, but they are mostly TINY >> https://t.co/HknJ7VJ2SZ https://t.co/ybGPyfHEKj
Moody's did a loan-by-loan analysis of 41 anonymous bank CRE portfolios. It found that, on average, banks should be holding about twice the amount of reserves they currently have to cover potential office losses. https://t.co/MYIUxK7rkd
U.S. regional banks are expected to increase their reserves and be cautious with stock buybacks due to potential losses from commercial real estate (CRE) loans. Moody's analysis suggests banks should hold double the current reserves to cover office losses. Many small banks are at risk of failure due to CRE losses.