16.06.2011 - Fed’s Foley says banks face losses on declining real estate
Falling property prices are a renewed threat to banks engaged in mortgage, home-equity and commercial real-estate lending, said Michael R. Foley, senior associate director in the Federal Reserve’s bank supervision division. “With residential and commercial property values still under strain, heightened reserve levels at banks remain appropriate for these sectors, and we expect that banks will continue to incur losses due to ongoing weakness in real estate markets,” Foley said.............................................Full Article: Source
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