James Kaplan quoted in article “CRE Could Significantly Shape Bankers’ Strategies in 2017”American Banker 12/23/16
Below is an excerpt:
A review of the financial crisis provides some rationale for regulators' diligence. A 2013 report from the Office of the Comptroller of the Currency and the Federal Reserve found that 23% of banks that exceeded guided levels for both CRE and C&D loans failed during the three-year economic downturn, compared with less than 1% of banks that stayed below those levels.
"There's the sense that the industry got a little ahead of itself and loaned too much on deals that were not tangible," said James Kaplan, a lawyer at Quarles & Brady. "It was unclear that these buildings would have tenants, and banks got left holding "something that didn't have too much value."