Industry NewsOpinion

Banks in real estate development carries heavy risk

Perspective: Savings and Loan crisis provides history lesson
Published on Feb 23, 2006

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by CareyBot

Commercial real estate development is neither an appropriate nor a necessary business activity for the nation's banking institutions. Yet federal regulators have allowed two major banks to invest in such projects, despite the considerable inherent risks and the troubling historical precedent of the savings-and-loan crisis, in which hundreds of financial institutions failed largely as a result of unwise real estate developments ...

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