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- Echoes of New Century’s Collapse Amid Sudden Firesale of Real Estate Loans as One Bank Sees 40% Downside
Echoes of New Century’s Collapse Amid Sudden Firesale of Real Estate Loans as One Bank Sees 40% Downside
from Zero Hedge
Those who peaked below the surface of the latest H.8 statement which, as discussed previously, saw the biggest drop on record in bank loans and leases in the last two weeks of March…
[…] … found another, perhaps even bigger surprise. As we detailed over the weekend when breaking down the weekly change in small bank loans and leases by their subcomponents, we found that whereas in the first week after the bank crisis (the one ending March 15) the bulk of the collapse in loans was in the traditionally volatile C&I space, the latest week was a surprise: that’s because while the plunge in C&I loans moderated substantially to just $6.9BN from $25BN the week before, the biggest slide was in one of the anchor pillars of the small bank sector: real estate loans.