The undersigned commercial real estate industry associations strongly support the Community Recovery and Enhancement Act (CRE Act), important legislation introduced by Congresswoman Shelley Berkley to help incentivize equity investment in distressed commercial real estate assets and to address the pending crisis threatening community banks that currently hold significant real estate debt on their books.Here's the link: It's Gets More Absurd
Please note that this pathetic entreaty specifically refers to community banks as being the primary beneficiary. Let me state for the record that the real problem with underwater CRE loans is sitting on the balance sheets of Citicorp, Bank of America, JP Morgan and other big banks. I know this for a fact. I know from a very good friend of mine who is a commercial real estate investment consultant to pension funds that these big banks do not mark down their real estate assets at all until a forced restructuring occurs. And many of the mega-deals that are at least 50% underwater. This means the equity is wiped out and the bank loans yet be restructured are worth, AT MOST, 50 cents on the dollar.
The big banks don't care about the community/regional banks other than to let them die so the big banks can pick over the carcasses. Make no mistake, this is another big bank bailout in process. Is everyone interested in seeing more of their tax money going into the pockets of the big banks and the people who run them? That's where this is headed...
The Congressman who introduced this - Shelley Berkley from Las Vegas - is a lifelong politician and no doubt has been heavily controlled and likely PAC-subsidized by the casino industry (i.e. lots of corruptions and graft to toss around). Here's her bio: Scumbag The casino industry has completely overbuilt Vegas and the big banks have underwritten most of the debt to finance the overbuilding. Here is a breakdown of Berkeley's money-givers: The Less You Bet, The More You Lose When You Win