Fed official says central bank stepping up focus on commercial real estate loans
By Alan Zibel, APThursday, July 9, 2009
Fed focused on commercial loans
WASHINGTON — A Federal Reserve official says the central bank is paying extra attention to banks’ books as losses from sour commercial real estate loans keep mounting.
Jon D. Greenlee, associate director of the Fed’s division of banking supervision, says in remarks prepared for a Congressional hearing Thursday that the central bank has stepped up training of its bank examiners so they are ready to deal with rising losses from the commercial real estate industry.
“We have devoted significantly more resources to assessing the quality of regulated institutions’ (commercial real estate) portfolios,” Greenlee said.
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