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Realistbear

Commercial Property Loan Defaults To Be Laundered Away

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http://www.bloomberg.com/apps/news?pid=206...id=aTq8Faqupmho

U.K. Banks May Transfer Commercial Property Loans Into REITs

By Chris "Christopher" Bourke

July 16 -- (Bloomberg) -- U.K. banks may transfer commercial property loans into real estate investment trusts to purge their balance sheets of debt and avoid future writedowns.

Banks are considering using REITs as publicly traded “exit vehicles†that could limit the losses they and their borrowers face, said Ian Marcus, head of real estate at Credit Suisse Group AG. The British Property Federation has recommended the idea to the government as a solution for state-owned banks weighed down by real estate loans, said Peter Cosmetatos, the London-based industry body’s finance director.

“It’s obviously being considered by all relevant parties because the sector needs to recapitalize and that is one methodology of doing so,†Marcus said in a telephone interview. The concept is in its early stages, he said.

Banks are saddled with 227 billion pounds ($371 billion) of loans against U.K. shops, offices and warehouses after funding the real estate boom that ended in 2007,

Another time bomb waiting to explode as the fiddle the books to make debt "go away" for another day.

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so, reits, the new sausage machine for turds.

At least this time, its in view of the press and public, whereas CDOs were hidden away behind the "wall of money", "asian investors" and a property bubble.

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http://www.bloomberg.com/apps/news?pid=206...id=aTq8Faqupmho

U.K. Banks May Transfer Commercial Property Loans Into REITs

By Chris "Christopher" Bourke

July 16 -- (Bloomberg) -- U.K. banks may transfer commercial property loans into real estate investment trusts to purge their balance sheets of debt and avoid future writedowns.

Banks are considering using REITs as publicly traded “exit vehicles†that could limit the losses they and their borrowers face, said Ian Marcus, head of real estate at Credit Suisse Group AG. The British Property Federation has recommended the idea to the government as a solution for state-owned banks weighed down by real estate loans, said Peter Cosmetatos, the London-based industry body’s finance director.

“It’s obviously being considered by all relevant parties because the sector needs to recapitalize and that is one methodology of doing so,†Marcus said in a telephone interview. The concept is in its early stages, he said.

Banks are saddled with 227 billion pounds ($371 billion) of loans against U.K. shops, offices and warehouses after funding the real estate boom that ended in 2007,

Another time bomb waiting to explode as the fiddle the books to make debt "go away" for another day.

Well, in Germany Angela M launched a bad bank for the exact same purpose, so this is only fair ;)

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I find it OFFENSIVE that a reporter says a bank is SADDLED with loans..

this is, after all, ALL THAT THEY DO....without loans they make nothing at all.

the reporter should have said banks are saddled with having paid bonuses and commissions on loans they made, with little thought to risk, in the stupid times. May they stew in their own juice...legal action is being taken against those that received the commissions and bonuses on attempts to claw back the losses.

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