Regional Banks Scramble to Sell CRE Loans
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According to sources, regional banks are scrambling to sell their commercial real estate portfolio. The question is, who is going to buy it all?
Who wants to bed it’s the Fed?
As more and more properties default and are handed over to lenders, seemingly on a daily basis now, this crisis is quickly accelerating.
It reminds me of the movie Margin Call. The banks seem to have awakened to how desperate the situation is and are now getting out while there’s still a chance. If you’ve never seen the movie, definitely watch it because we’re living through it right now.
My all time favorite scene is Jeremy Irons at his absolute best playing the CEO of a be-leagued investment bank. Not only is the acting incredible, but his explanation of what a CEO’s role is matches perfectly with my own personal experience.
So to speak, as the movie says, the music is slowing or may have even stopped already. And as Jeremy Irons slams his fists on the table:
“You know you are selling something that has no value”
“We are selling to willing buyers at the current fair market price so that WE MAY SURVIVE!”
…
“THIS IS IT! I’M TELLING YOU THIS IS IT!”
I can almost assure you this very scene is playing out across boardrooms across the country right now.
We are in for a ride.