Concentrated Risk - CRE loans and Bank Holding Companies

Tuesday, August 25, 2009, 8:51 AM
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Over at The Big Picture, Barry Ritholtz' excellent blog, he's got a list of the top bank holding companies, sorted by their Commercial Real Estate (CRE) loans.

There are a couple of shocking things on that list. The first is the level of concentration of holdings by those at the top of the list. Wells Fargo, for instance, at the top of the list, holds some $88 billion in CRE loans, or 50% more than the next bank on the list.

Next is the degree to which most banks aggressively expanded their CRE loans over the past year by 10%, 20%, even 40% and more. Wait, what? Does that seem a prudent thing to do over this past year?

At any rate, here's the list:


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