Federal programs won’t stop commercial foreclosures

March 27, 2009 01:04PM

The recently unveiled Treasury Department program that allows the federal government to help private buyers pick up toxic loans and commercial mortgage-backed securities won’t be enough to halt the expected wave of commercial real estate foreclosures, industry experts said. Commercial real estate prices may fall 35 to 45 percent from their peak. But the program could still spur banks to start lending, said Thomas Barrack Jr., founder and CEO of Colony Capital, a private equity firm.

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