23 News banking expert Bill Roop says commercial real estate loans could pose the next big threat for banks. Many institutions are writing off commercial loans at a much bigger rate than in the past and Roop believes this number will continue to rise. Local and regional banks could have the hardest time offsetting losses. Roop says, how serious loans will be, will depend on how quickly we can move out of this recession.
Commercial real estate loans have hit financial institutions of all sizes; analysts believe larger, more diversified banks could have an easier time dealing with the losses.