CRE Wreck Looms For Regional Banks

From CNBC:

"The larger banks that have multiple revenue streams, some of those streams are doing very well," said David Twibell, president of wealth management at Colorado Capital Bank in Denver. "For the smaller banks, the primary revenue generator is going to be the lending side of the business. That's still a real mess out there. Particularly relating to commercial real estate, it's getting worse, not better."

"Banks are writing off commercial real estate loans now at a bigger rate than in the last 20 years," said Kathy Boyle, president of Chapin Hill Advisors in New York. "It's a double-whammy. Banks have another shoe to drop on their balance sheets, and regional banks tend to have a much bigger exposure."