Wondeboy Tim Geithner declares that commercial real estate losses are not a problem for banks. In unrelated news, Citigroup stock plummeted after an analyst reported an anticipated $10 billion writedown of assets
In other unrelated news, life insurance companies MetLife and Prudential were down sharply.
Wow. He really said that? Does he even remember how we got into this mess in the first place???
The FDIC has joined the chorus. From what I read, the FDIC is relaxing the rules about non-performing commercial real estate loans…. basically saying to the banks “Don’t worry, commercial loan borrowers tend to recover eventually, so don’t worry”…
The truth is the FDIC doesn’t have the money to deal with the huge losses about to hit, so they’re trying to kick the can down the road and “hope” things work out in a few years