The Real Deal Miami

Commercial loans may be next step in downturn 

August 22, 2008 08:13AM

Bankers are trying to shed commercial mortgages, fearing they will start defaulting and cause more write-downs for banks in the next quarter. At the end of the second quarter, Deutsche Bank held $25.1 billion in commercial loans, Morgan Stanley had $22.1 billion and Citigroup had $19.1 billion. Moody’s/REAL Commercial Property Price Index has dropped about 12 percent since October.