U.S. Treasury Secretary Janet Yellen has indicated that while commercial real estate (CRE) issues are not expected to pose a systemic risk to the banking sector, there is concern over market stress that could potentially lead to a nonbank failure. Yellen mentioned that the Financial Stability Oversight Council (FSOC) is very focused on the situation, especially as nonbank mortgage companies lack access to deposits, unlike banks. The risks are particularly concentrated in office spaces within the CRE market. Yellen's comments suggest that regulators are keeping a close eye on the sector and are prepared for possible stress scenarios.
Regional banks are in the spotlight again as cracks begin to show in their balance sheets due to the ongoing distress in the commercial real estate sector. https://t.co/l8wSDJYQzx
Yellen sees more commercial real estate stress, losses, but no systemic banking risk - Reuters https://t.co/doh2m6A6XB
"Yellen continued to prattle about the potential risk from failing nonbank mortgage lenders in her Senate Banking Committee testimony, this as commercial banks sink under the weight of accumulating credit losses." / https://t.co/158SvJXX8y
Janet Yellen is wary of risks from nonbank mortgage lenders, which are now a major presence in the market for home loans https://t.co/w4I37QM8Kx
Janet Yellen said US regulators are monitoring risks from nonbank mortgage lenders and warned a failure of one of them is possible https://t.co/bckBak0Hby
Bank tremors serve as a reminder: Just because a crisis hasn’t hit immediately doesn’t mean commercial real estate pain isn’t coming. https://t.co/9c0O6OOtKV
***Yellen Eyes Nonbank Mortgage Lenders, Warns of Potential Failure*** @SecYellen is an idiot. The large forward lenders are just fine. $PFSI and $COOP outperform the banks. But there are two reverse issuers Janet is about to own. @USTreasury will own whole HECM market....
🔴 US TREASURY SECRETARY YELLEN: AT THIS JUNCTURE THE IMPACT ON THE BROADER ECONOMY AND FINANCIAL MARKETS OF THE PROBLEMS IN THE CRE MARKET SEEMS LIKELY TO BE CONTAINED.
Fed's Barkin: Commercial Real Estate Troubles Concentrated In Office Spaces - Commercial Real Estate Risk Is On Banks' Radar - Hope And Expectation Is Banks Are Ready For Commercial Real Estate Stress
Treasury Secretary Janet Yellen said US regulators are monitoring risks stemming from nonbank mortgage lenders, and cautioned that a failure of one of them is possible in the case of market strains https://t.co/u3QH5Il9hw via @markets
Yellen “FSOC is very focused on that because nonbank mortgage companies lack access to deposits, which banks have.” cc @m3_melody
Treasury Secretary Janet Yellen said US regulators are monitoring risks stemming from nonbank mortgage lenders, and cautioned that a failure of one of them is possible in the case of market strains https://t.co/OGag91GPSE
*YELLEN: CONCERN IN MARKET STRESS, COULD SEE A NONBANK FAILURE
US Tsy Yellen: Concern In Market Stress, Could See A Nonbank Failure
🔴 US TREASURY SECRETARY YELLEN: I BELIEVE CRE WON'T END UP BEING SYSTEMIC BANKING RISK.
*YELLEN: FINANCIAL STABILITY PANEL MONITORING CRE *YELLEN: MAY BE SMALLER BANKS STRESSED BY COMMERCIAL PROPERTY