Regional banks are trying to unload commercial real estate loans as a new banking crisis is unfolding. Regional banks are attempting to minimize their risks as another crisis seems to be unraveling right now.
After the collapse of banks like Silicon Valley Bank and Signature Bank, many regional banks are trying to sell off their commercial real estate (CRE) loans, even if they have to do it at a loss, in hopes of avoiding a similar fate.
Wells Fargo is one such bank. It announced it would be downsizing its CRE portfolio and taking losses, while PacWest sold $2.6 billion in construction loans at a loss last month. Citizens Bank has put $1.8 billion worth of CRE loans for sale in recent months, while Customers Bancorp has placed $16 million of its current CRE portfolio for sale.
The stress seen in the commercial real estate sector right now is weighing heavily on banks and regulators alike, and it’s regional banks that are the most vulnerable. A Bank of America report shows that 68 percent of commercial real estate loans are currently held by regional banks. Moreover, estimates by JPMorgan Chase indicate that these types of loans account for an average of 28.7 percent of regional and smaller banks’ assets and that 21 percent of commercial real estate loans are likely to default, which could cost banks roughly $38 billion in losses, according to a report by Natural News.
Commercial mortgages are currently facing multiple threats. Rising interest rates are making it costlier for borrowers to refinance while dwindling demand for office space as more people work remotely is causing credit concerns for landlords.
Additionally, the commercial real estate loans that originated ten years ago and are now coming due could put borrowers in a very unfavorable position. The average mortgage rates when these loans originated were 4.58 percent; they are now around 6.5 percent.
Delinquencies on commercial mortgage loans are already rising, with missed payments on commercial mortgage-backed securities jumping half a percent in May over April to hit 3.62 percent. The problem was particularly pronounced in offices.
A new crisis appears to be unfolding right now as the ruling class prepares by making manmade laws that control the use of money.
Article cross-posted from SHTF Plan.
Independent Journalism Is Dying
Ever since President Trump’s miraculous victory, we’ve heard an incessant drumbeat about how legacy media is dying. This is true. The people have awakened to the reality that they’re being lied to by the self-proclaimed “Arbiters of Truth” for the sake of political expediency, corporate self-protection, and globalist ambitions.
But even as independent journalism rises to fill the void left by legacy media, there is still a huge challenge. Those at the top of independent media like Joe Rogan, Dan Bongino, and Tucker Carlson are thriving and rightly so. They have earned their audience and the financial rewards that come from it. They’ve taken risks and worked hard to get to where they are.
For “the rest of us,” legacy media and their proxies are making it exceptionally difficult to survive, let alone thrive. They still have a stranglehold over the “fact checkers” who have a dramatic impact on readership and viewership. YouTube, Facebook, and Google still stifle us. The freer speech platforms like Rumble and 𝕏 can only reward so many of their popular content creators. For independent journalists on the outside looking in, our only recourse is to rely on affiliates and sponsors.
But even as it seems nearly impossible to make a living, there are blessings that should not be disregarded. By highlighting strong sponsors who share our America First worldview, we have been able to make lifelong connections and even a bit of revenue to help us along. This is why we enjoy symbiotic relationships with companies like MyPillow, Jase Medical, and Promised Grounds. We help them with our recommendations and they reward us with money when our audience buys from them.
The same can be said about our preparedness sponsor, Prepper All-Naturals. Their long-term storage beef has a 25-year shelf life and is made with one ingredient: All-American Beef.
Even our faith-driven precious metals sponsor helps us tremendously while also helping Americans protect their life’s savings. We are blessed to work with them.
Independent media is the future. In many ways, that future is already here. While the phrase, “the more the merrier,” does not apply to this business because there are still some bad actors in the independent media field, there are many great ones that do not get nearly enough attention. We hope to change that one content creator at a time.
Thank you and God Bless,
JD Rucker
