Improper commercial, construction loans linked to bank failures

04/4/2013 | Housing Wire

Research from the Office of the Comptroller of the Currency and the Federal Reserve has found that banks that made commercial real estate loans and construction loans in excess of guidelines had the most trouble -- and in many cases failed -- when the economic downturn took hold. The report found that 13% of banks that surpassed the construction lending threshold failed, and 23% of those that exceeded the guidelines for both sectors failed between 2008 and 2011.

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