Bank bailout watchdog warns of commercial real estate crisis

Corbett B. Daly
Reuters US Online Report Politics News

Feb 11, 2010 00:07 EST

WASHINGTON (Reuters) - The commercial real estate market has fallen more than 40 percent from early 2007 and a wave of loan failures in the next few years could threaten the economy just as it struggles back to its feet, a report from the panel overseeing the $700 billion bank bailout said.

"A significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American," said the report, released on Thursday.