Giant landlords desperate for refinance money; Insider Q&A with Stan Ross
Orange County Register online
By Jeff Collins
... Us: How will all the tumult in commercial real estate impact the economy and affect the economic recovery?
Stan: Commercial real estate will affect the economy differently than residential. Many of these commercial mortgage backed securities are held by banks as well as other institutions. Those CMBS were sliced and diced into different classes and then sold into the marketplace to many different investors.
Some of these institutions that were holding or buying these securities and will run into some serious problems with respect to liquidity and capital requirements. They will either have to be restructured, taken over or look for new equity capital to continue on. The impact on the economy could be a further loss of some institutions and a continued slowdown of new development...