‘Zombie Offices’ Spell Trouble for Some Banks - The New York Times
‘Zombie Offices’ Spell Trouble for Some Banks - The New York Times
Bank tremors serve as a reminder: Just because a crisis hasn’t hit immediately doesn’t mean commercial real estate pain isn’t coming.
I smell a
nation wide theftbailout inboundThe banks should pull themselves up by the bootstraps and cut down on the avocado toast. That's the path to financial solvency, right?
Jerome H. Powell, the Fed chair, acknowledged during a “60 Minutes” interview that aired on Sunday that “there will be losses.” For big banks, Mr. Powell said, the risk is manageable. When it comes to regional banks, he said that the Fed was working with them to deal with expected fallout, and that some would need to close or merge.
I think they're acutely aware how unpalatable a bailout would be to the public, and they also know the problem exists and are able to plan ahead, so I don't think we're going to be seeing a big bailout here
Sounds like a "you" problem, banks.
Nobody told "you" to loan money to build unused offices.
Oh, no! Someone, please think about the banks! /s
Fill them up with homeless people and solve the housing crisis.
Sounds like a good idea on the surface, but I’ve read elsewhere that office space isn’t really suited to living space, and converting it is cost prohibitive in many cases because the buildings were never intended for residential use. Still, in a crisis there are always creative solutions to address some hurdles. Problem is that takes political will. Something that’s hard to find, at least in the US.