Article: REAL ESTATE SLUMP CLOUDING OUTLOOK FOR BANK EARNINGS.(Business)

Byline: Edward Kean Knight-Ridder

The real estate slump that has plagued the Northeast and Southwest appears to be spreading to other regions of the country, further clouding the outlook for already depressed bank earnings.

Analysts caution that banks that expanded their real estate lending rapidly during the 1980s may see their earnings hurt for as long as three years as a result of the current real estate woes, which are particularly acute in the commercial area.

"The problem is going to be with us, in one way or another, at least through next year," said James Rosenberg, a banking industry analyst for Shearson Lehman Hutton.

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