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Article: Real estate managers eye bank assets; Losses from real estate loans at failed banks go as high as $100B.(News)
- Article from:
- Investment News
- Article date:
- September 14, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Arleen Jacobius
Real estate money managers are joining private-equity firms in the line to buy failed banks.
While the Federal Deposit Insurance Corp. changed its rules Aug. 26 to make the banks a tempting target for private-equity managers, some insiders say the true draws are the properties and real estate debt the banks hold.
The opportunity is huge. Estimates on losses from real estate loans on the books of 900 failed banks go as high as $100 billion. Real estate firms already are in talks with surviving banks to buy the real estate debt and properties on their books, sources say, although no deals have closed yet.
"Real ...