Stress tests ignored commercial real estate threat, Congress warns

US banks face hundreds of billions of dollars in losses on commercial real estate (CRE) loans - a danger that was missed by the Capital Adequacy Program (Cap) stress tests in early 2009.

The Congressional Oversight Panel for the Troubled Asset Relief Program, in a report issued yesterday, predicted that banks could see up to $300 billion in losses on their commercial real estate portfolios, and warned the threat this poses to the US financial system was completely overlooked by the Cap. Between

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: