Warren: Sour Real Estate Loans May Sink Banks

Wednesday, 17 Feb 2010 03:30 PM
By: Forrest Jones

Commercial real estate loans could turn sour and threaten an already fragile U.S. economy unless regulators prepare now, says Elizabeth Warren, a Harvard law professor and chairman of the Congressional Oversight Panel of the Troubled Asset Relief Program.

Between 2010 and 2014, about $1.4 trillion in commercial real estate loans reportedly will reach the end of their terms, and about half of those loans are “underwater,â€