Richmond Fed, Report: Out of the Office, Into a Financial Crisis?

“While offices face plenty of challenges over the coming year, the risks to the sector and to bank lenders in general don’t appear widespread at this stage. Nevertheless, bank regulators seem to be keeping a close eye on these developments, mindful of past crises where real estate was at the center. In a March 6 speech to the Institute of International Bankers, FDIC Chairman Martin Gruenberg noted that the effect of office headwinds on bank balance sheets was “an area of ongoing supervisory attention.”