Banks restructure troubled loans to buy time

02/22/2010 | MarketWatch

As pressure from the commercial real estate sector mounts, banks are restructuring loans to buy time for borrowers, which might help the lenders avoid larger losses. However, the problem is expected to re-emerge down the line. "Asset quality appears to have stabilized, but we just don't know the impact of all these restructured loans," said banking analyst Paul Miller of FBR Capital Markets. "This could mean problems persist for longer than investors expect."

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