A number of banks around the country have been taken over by the FDIC. Many of these banks have failed because of the reduction of the valuation of their commercial real estate holdings. We have been following these changes in the strength of banks countrywide. So far, New England has escaped these challenges. But, as commercial real estate values continue to drop, banks will have to reassess the values of their portfolios. Meanwhile commercial loans that have reduced values due to real estate holdings may have to undergo the commercial workout process. The FDIC just issued new guidance on guidelines for banks to engage in prudent measures in commercial workout. Here is the link to the guidance issued yesterday, October 30, 2009.
http://www.fdic.gov/news/news/financial/2009/fil09061a1.pdf
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