The Panic of 2008: Bank Failure and Commercial Real Estate

摘要

Failure is a distressing topic. U.S. banks are again being placed in receivership or merged by supervisory agreement at a quick pace. Recent failing banks have low capital and large losses often precipitated by high-risk ADC loans or investment securities related to the mortgage market. Such banks had tried to grow quickly several years prior to failure and the business strategy led to erosion of capital ratios and incurred high-cost funding that required bankers to originate or purchase high-yield and high-risk assets.