America's Commercial Property Losses: Not a Pretty Picture

HopeTracker| The Wall Street Journal writes that how Lehman restructures its $16 billion real-estate portfolio may well provide a template for other banks. U.S. banks and thrifts hold more than $1.2 trillion in commercial mortgages backed by offices, hotels, shopping malls and apartments, according to Deutsche Bank AG.

Now, with property values down and credit still scarce, losses for America’s commercial-property lenders could total $115 billion to $150 billion, according to a Deutsche report.