New York Fed: 'Extend-and-Pretend in the U.S. CRE Market'
October 29, 2024
October 29, 2024
NEW YORK, Oct. 29 (TNSres) -- The Federal Reserve Bank of New York issued the following staff report (No. 1130) in October 2024 by Matteo Crosignani and Saketh Prazad entitled "Extend-and-Pretend in the U.S. CRE Market."
Here are excerpts:
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We show that banks "extended-and-pretended" their impaired CRE mortgages in the post-pandemic period to avoid writing off their capital, leading to credit misallocation and a buildup of financial . . .
Here are excerpts:
* * *
We show that banks "extended-and-pretended" their impaired CRE mortgages in the post-pandemic period to avoid writing off their capital, leading to credit misallocation and a buildup of financial . . .