Knakal, Gosin identify bank recovery challenges

August 24, 2009 11:23AM


As the residential market, theoretically, begins to bottom out and the commercial market nears a possible nose-dive, the inquiring minds at CNBC’s Squawk Box turned their attention toward identifying the challenges the market faces. The show’s guests, Robert Knakal, chairman of Massey Knakal Realty Services, and Barry Gosin, CEO of Newmark Knight Frank, both cited bank stability as key. “To talk about credit, you have to disaggregate the market,” Knakal said. He argued that smaller community banks continued to lend throughout the credit crisis and still do so today. But getting those nine-figure loans from bigger banks — that remains a tricky task, Knakal said. “There are tremendous challenges trying to get larger loans.” Another problem: as banks regain stability, Gosin said, they’re going to focus less on lending and more on deleveraging. “Subprime was only the spark,” Gosin said. “[There are] so many different ways that the banks became over-leveraged with all of these assets.”