10/30/2009

Experts are having trouble predicting how big of an impact commercial real estate loan losses will have on banks. Many expect the losses to trump recent bank troubles, including the collapse of the housing market, but poorly defined rules for loan modifications make it difficult to precisely measure the future impact of loan losses. The commercial real estate loan losses have been rising for banks this year at a time when banks have been setting aside less money for loan-loss reserves.

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