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RBC Capital Markets analyst Gerard Cassidy says the U.S. banking system at the end of 2006 was more exposed to commercial real estate than at any other time that regulators have measured. That exposure, Cassidy believes, could result in as many as 1,000 bank failures by the end of...

Author: /time Magazine | Title: Financial Woes Spread to Smaller Banks | 5/22/2009 | See Source »

If you want to know whether the banking crisis is in the third inning or the ninth, consider Corus Bankshares. The Chicago regional bank has made just over $4 billion in commercial real estate loans. The recently completed government bank stress tests assumed that as many as 12% of all...

Author: /time Magazine | Title: Financial Woes Spread to Smaller Banks | 5/22/2009 | See Source »

As the larger banks did, regional banks made hundreds of billions of dollars in real estate loans. The smaller banks, though, lent mostly to commercial developers and home builders who, as business owners, have been able to hang on longer than the typical strapped consumer. But now that the recession...

Author: /time Magazine | Title: Financial Woes Spread to Smaller Banks | 5/22/2009 | See Source »

Some analysts believe that with the economy turning, commercial real estate loan losses will not be nearly as bad as Cassidy expects. But even under the government's baseline scenario for the banking industry, which was released as part of the stress test, U.S. banks could have as much as...

Author: /time Magazine | Title: Financial Woes Spread to Smaller Banks | 5/22/2009 | See Source »

Polonsky also points out what he deems faulty, nonanalogous logic sometimes used by advocates for shorter shifts, who liken residents' work regulations to those for commercial pilots, who are similarly prohibited from flying more than a maximum number of hours in a stretch. "If you think of what is really...

Author: /time Magazine | Title: Are Medical Residents Worked Too Hard? | 5/21/2009 | See Source »

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