Anyone in the industry could reasonably be tired of hearing how much trouble banks potentially face over CRE loans — especially the bankers.
It's not that people are enjoying this. And it's not as though huge numbers of banks are about to fold.
The concerns are also reasonable, given what happened to Silicon Valley, First Republic, and Signature banks in 2023. The biggest issue then was concentration in other industries and holding long-term assets that would have been marked down sharply if marked to market. Depositors fled with their cash and the banks teetered on the edge of insolvency, at which point the Federal Deposit Insurance Corporation stepped in, as it had to.
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