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Mistakes by air traffic controllers — stretched thin by a nationwide staffing shortage — have been one major factor. So do the air traffic controllers who scour the skies and manage takeoffs and landings. The number of fully trained air traffic controllers nationwide has fallen 10 percent in the past decade. data and the agency’s most recent “Air Traffic Controller Workforce Plan.”Nearly all U.S. air traffic control facilities are understaffed Circles represent 313 air traffic facilities in the United States, including airport towers and larger regional centers. Desiree Rios for The New York TimesPilots, air traffic controllers and federal investigators have warned repeatedly that America’s air safety system is fraying.

Persons: Louis Armstrong, —, ”, Biden, Matthew Lehner, Mr, Lehner, Ilana Panich, Kennedy, Jan, “, ” Jennifer Homendy, Joe Raedle, Reagan, Desiree Rios, ’, ‘ Organizations: Southwest Airlines, Louis Armstrong New, International Airport, Delta Air, New, Airport, American Airlines, Frontier Airlines, Frontier, Federal Aviation Administration, The New York Times, United Airlines, American, Airbus, louisiana Magnolia, Times, Phoenix, NASA, Aviation, Pilots, Technology, U.S, Airlines, United, “, Bergstrom International Airport, Kennedy International, Delta, FedEx, JetBlue Airways, JetBlue, National Transportation Safety, Spirit Airlines, Fort Lauderdale, Las Vegas, San, Casper, Federal Aviation, The Times, FAA, National Transportation Safety Board, Department of, Gulfstream, Miami, The New York Times Pilots, Flying Magazine, Sky Harbor, Boeing Locations: Airport Mississippi, New Orleans, San Francisco, American, Dallas, louisiana, louisiana Magnolia Minden arkansas, Minden louisiana, United States, U.S, San Diego, Phoenix, Swiss, Continental, Buffalo, United, Delta, Southwest, —, Austin, Texas, New York, Austin , Texas, Sarasota , Fla, Burbank, Calif, Boston, New York City, Fort, Salt Lake, Ontario, Denver, Las, Portland ,, Baltimore, Miami, Peoria, Ill, Fort Worth, Jacksonville, Fla, Philadelphia, Fort Lauderdale, Lexington, Ky, Tampa

New York CNN —Sam Bankman-Fried, the alleged crypto grifter, is about to learn which of two profoundly divergent paths he’ll take on the road to trial. One path allows him to continue his house arrest in the comfort of his parents’ California home. If his bail is revoked, Bankman-Fried will be immediately remanded to a notorious federal detention center in Brooklyn. Bankman-Fried, who has pleaded not guilty to multiple conspiracy and fraud charges, is set to go to trial in October. But the company came unglued in the span of a week last November — as concerns about its financial ties to Bankman-Fried’s crypto hedge fund, Alameda Research, spurred investors and customers to yank their funds.

Persons: Sam Bankman, ’, Judge Lewis Kaplan, “, ”, Fried, Caroline Ellison, FTX Organizations: New, New York CNN, Bankman, Metropolitan Detention Center, New York Times, of Prisons, Prosecutors, Super Bowl, Alameda Research Locations: New York, ’ California, Brooklyn, Bahamas

☆ ‘Red, White & Royal Blue’ Review: Keep Calm and Pine On
▼ + stars: | 2023-08-10 | by ( Amy Nicholson | ) www.nytimes.com time to read: +1 min

(Perez also seems aware that his angular cheekbones and roguish swagger make him resemble a young Al Pacino.) Their centerpiece sex scene is intimately staged with Galitzine tracing Perez with his fingertips as though his character wants to remember the moment forever. The D.C. sequences are snappy, freshened-up versions of the banter we’ve long seen on TV. (Sarah Shahi as the president’s no-nonsense aide and Aneesh Sheth as a gruff Secret Service officer are standouts.) Trust me, you’re in good hands.”Red, White & Royal BlueRated R for swearing and some royal hanky-panky.

Persons: Alex, “, ” Henry, Clifton Collins Jr, Perez, Al Pacino, Sarah Shahi, Aneesh, ” Organizations: Royal, Amazon Prime Locations: Mexican

☆ D.C. grand jury that indicted Trump meets Tuesday as election probe continues
▼ + stars: | 2023-08-08 | by ( Dan Mangan | ) www.cnbc.com time to read: +3 min

The same panel on Aug. 1 charged Trump with four felony counts related to his attempt to reverse President Joe Biden' s victory over him. NBC News reported that multiple members of the grand jury were seen around the E. Barrett Prettyman Courthouse in Washington. An attorney for the Trump ally lawyer John Eastman last week confirmed that Eastman was likely the second co-conspirator described in the indictment. Kerik's lawyer said the interview centered on the role that Trump campaign lawyer Rudy Giuliani played in the attempt to overturn the 2020 election results. The Trump indictment details the work of a co-conspirator who appears to be Giuliani.

Persons: Jack Smith, Donald Trump, Joe Biden, Barrett Prettyman, J ack Smith, Smith, Trump, John Eastman, Eastman, Eastman's, yank, Biden, Mike Pence, Pence, Bernie Kerik, Rudy Giuliani, Kerik, Giuliani Organizations: US Department of Justice, Trump, NBC News, Washington , D.C, Bar, New York City Police, Giuliani Locations: Washington ,, Washington, California

CNN —President Joe Biden has decided that the headquarters of US Space Command will remain in Colorado and not move to Alabama, two US officials told CNN on Monday, reversing a decision by then-President Donald Trump. US Space Command, which is a joint command and separate from the US Space Force military branch, is currently housed in Colorado Springs, but the Air Force recommended near the end of Trump’s presidency that the command be moved to Huntsville, Alabama. Former Air Force Secretary Barbara Barrett also chose Huntsville as the preferred location for SPACECOM headquarters in 2021. Colorado Springs is home to Peterson Space Force Base, previously known as Peterson Air Force Base. Rep. Doug Lamborn, a Republican from Colorado and chair of the House Armed Services subcommittee on strategic forces, hailed Biden’s decision to keep Space Command headquarters at Peterson Space Force Base, calling it “the most viable option” and the “best permanent home” for the military’s newest combatant command.

Persons: Joe Biden, Donald Trump ., Frank Kendall, Biden, Barbara Barrett, James Dickinson, Defense Lloyd Austin, Kendall, ”, Republican Sen, Tommy Tuberville, Tuberville, SPACECOM, Tuberville’s, ” Tuberville, “, Katie Britt, Biden “ irresponsibly, yank, Robert Aderholt, Doug Lamborn Organizations: CNN, US Space Command, Donald Trump . US Space Command, US Space Force, Air Force, Huntsville , Alabama . Air Force, Force, Former Air Force, Huntsville, Space Command, Defense, of, Republican, The Department of Defense, Alabama, Department of Defense’s, ” Republican, Arsenal, Missile Defense Command, Colorado Springs, Peterson Space Force Base, Peterson Air Force Base, House Armed, “, Associated Press, SPACECOM Locations: Colorado, Alabama, Colorado Springs, Huntsville , Alabama, SPACECOM, Huntsville

☆ Plans for the world's largest Costco warehouse are under review, but customers would only be able to shop in part of it
▼ + stars: | 2023-07-20 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +2 min

Costco is seeking to build a new 241,342 square-foot warehouse in Fresno, California. The facility would replace an existing location and combine ecommerce fulfillment under one roof. This would be the wholesale club's largest warehouse, but shoppers would only be able to access part of the location. Target has gone all-in on using its stores to fulfill orders, and Walmart has used its stores for e-commerce fulfillment for years. The Salt Lake City location also opened as a hybrid concept, with a general members store and a dedicated business center for commercial customers under one roof.

Organizations: Costco, Service, Walmart, Fresno Bee Locations: Fresno , California, Wall, Silicon, Salt Lake City , Utah, Target, Salt Lake City, Fresno, Fresno . City

☆ U.S regional bank shares rise on interest income, deposits stabilizing
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +3 min

July 19 (Reuters) - Three major U.S. regional banks met or beat profit expectations on Wednesday as higher interest rates allowed them to charge more for loans, while deposits stabilized, sending shares across the sector up. Investors have been anxiously awaiting regional bank second quarter earnings as they look for reassurance that the turmoil that rocked the sector earlier this year has finally passed. M&T Bank Corporation (MTB.N) and Citizens Financial Group (CFG.N) both beat Wall Street estimates from charging clients higher interest rates after the U.S. Federal Reserve raised borrowing costs to rein in stubborn inflation. The KBW Regional Bank Index (.KRX) and S&P regional bank index (.SPCOMBNKS) were each gaining nearly 2% in line with the broader market. M&T's deposits rose to $162.1 billion from $159.1 billion at the end of the first quarter, but fell about 4.9% year-on-year.

Persons: NII, Dennis Dick, Michelle Price, Manya Saini, Jaiveer Singh Shekhawat, Johann Cherian, Chibuike, Nick Zieminski Organizations: T Bank Corporation, Citizens Financial, Wall, U.S . Federal Reserve, Citizens, US Bancorp, Big, Regional, Zions Bancorp, Truist, Fifth Third Bancorp, Bank, Triple D, Thomson Locations: Big U.S, Silicon, Bengaluru, New York

☆ US bank shares jump on interest income and deals optimism, but outlook mixed
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: +5 min

The bank said it expects full year NII to be up about 8% at about $57 billion. The bank's full year NII outlook remains unchanged at 20% growth, Chief Financial Officer Dermot McDonogh told analysts. Overall, its profit slipped 18% in the second quarter as a fewer deals hurt investment banking revenues. Sluggish deals have been a sore spot across Wall Street with global investment banking activity plunging to $15.7 billion in the second quarter, the lowest since 2012, according to Dealogic. While investment banking and trading were also a drag on earnings for big banks on Friday, JPMorgan likewise said the bank was seeing “green shoots” in trading and investment banking.

Persons: Nacho, Morgan Stanley, BNY Mellon, Dermot McDonogh, Robert Pavlik, BNY, Morgan, JPMorgan Chase, Charles Schwab, Walt Bettinger, MS.N, Morgan Stanley's, Sharon Yeshaya, Goldman Sachs, Mehnaz Yasmin, Niket, Jaiveer, Manya Saini, Saeed Azhar, Tatiana Bautzer, Lance Tupper, Johann Cherian, Michelle Price, Megan Davies, Nick Zieminski Organizations: of America, REUTERS, WASHINGTON, . Bank of America, Bank of New York Mellon Corp, Federal Reserve, Bank of, Wall, PNC Financial Services, Dakota Wealth, JPMorgan, Citigroup, PNC, Silicon Valley Bank, Reuters, Street, Thomson Locations: New York, U.S, Big U.S, NII, KBW, Wells Fargo, Silicon, Bengaluru

☆ U.S. banks shares spark after interest income boost, but outlook mixed
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Nacho Doce/File PhotoWASHINGTON, July 18 (Reuters) - Big U.S. banks on Tuesday said higher interest rates had helped boost profits in the second quarter, causing shares to spike, but a pullback in consumer spending, slower loan growth and increased deposit costs may cloud the outlook for the sector. Bank of America's net interest income (NII), which measures the difference between what banks earn on loans and pay out on deposits, rose 14% to $14.2 billion in the second quarter, helping it to beat Wall Street estimates. The bank said it expects full year NII to be up about 8% at about $57 billion. That has forced some banks to offer consumers higher returns to deter them from moving their deposits to competitors. Overall, the bank's profit slipped 18% in the second quarter as Wall Street's deal-making drought stunted revenue from investment banking, although investors were cheered by executives' positive outlook for M&A.

Persons: Nacho, BNY Mellon, Robert Pavlik, BNY, JPMorgan Chase, Charles Schwab, Morgan Stanley, MS.N, BofA, Mehnaz Yasmin, Niket, Manya Saini, Saeed Azhar, Tatiana Bautzer, Lance Tupper, Johann Cherian, Michelle Price, Megan Davies, Nick Zieminski Organizations: of America, REUTERS, WASHINGTON, Bank of America, Bank of New York Mellon Corp, Federal Reserve, Bank of, Wall, PNC Financial Services, Dakota Wealth, " Bank of America, JPMorgan, Citigroup, PNC, Silicon Valley Bank, Investment, Thomson Locations: New York, U.S, Big U.S, NII, KBW, Wells Fargo, Silicon, Bengaluru

☆ Walmart customers kept accidentally buying $49 Walmart+ memberships at self-checkout, forcing the company to abruptly yank a promotion
▼ + stars: | 2023-07-12 | by ( Yeji Jesse Lee | Dominick Reuter | ) www.businessinsider.com time to read: +6 min

The company has been pushing discounted memberships during its Walmart Plus Week event. The membership offer was part of Walmart Plus Week, the retailer's answer to Amazon's Prime Day. Just like the Amazon program, Walmart Plus Week is about not just sales, but driving new members to sign up for the service, which normally costs Walmart shoppers $98 a year. A push to grow Walmart+Walmart has pushed to grow its Walmart+ membership base for some time now. Are you a Walmart employee or a shopper with a story to share?

Persons: Dominick Reuter, Yeji Lee Organizations: Walmart, Service, Privacy, Paramount, Amazon, Wisconsin Walmart Locations: Wall, Silicon, Wisconsin, Texas

A recent report in the Wall Street Journal that Elon Musk uses ketamine at parties could prompt an investigation into his security clearance, two attorneys who specialize in national security law told Insider. Drug use is typically grounds for the government to yank someone's security clearance, the two national security attorneys told Insider. Security clearance applicants are specifically required to disclose whether they have used ketamine on SF-86, the standard application form used to apply for a clearance. Edmunds, the security clearance attorney, said that in his experience, there is a "very prevalent" double standard for security clearance infractions, wherein defense contracting executives and higher-ranking government officials receive more permissive treatment than their subordinates. Musk boosts the benefits of drug useAfter the Rogan incident, Musk told "60 Minutes" that he didn't regularly smoke pot.

Persons: Elon, Joe Rogan's, Musk, yank, Dan Meyer, Tully, Alan Edmunds, Meyer, Doug Hurley, Bob Behnken, Joe Burbank, SpaceX's, Spirit AeroSystems, Leonardo, Edmunds, Mark Zaid, Marijuana, Rogan, It's, Tesla, Sam Altman Organizations: Street, NASA, Air Force, Elon, SpaceX, Tesla, The Defense Department, Bloomberg, CNBC, National Reconnaissance Office, Space Force, Kennedy Space Center, Orlando Sentinel, Tribune, Service, Getty, Defense Department, National Intelligence, Defense Counterintelligence, Security Agency, Spirit, Terran, FDA, Washington Post, Politico, New York Times, Twitter Locations: Florida, United States

☆ You Really Are a Tick Magnet
▼ + stars: | 2023-06-30 | by ( Darren Incorvaia | ) www.nytimes.com time to read: +1 min

The tiny arachnids spread a variety of harmful diseases, as they expand their range to new areas. But two scientists recently set out on a counterintuitive mission to collect as many bloodsucking ticks as possible. Dr. Lihou is a veterinary parasitologist who studies ticks, and Dr. England is an ecologist who studies electricity and electroreception. The resulting paper, published Friday in the journal Current Biology, provides a new reason to worry about ticks. While the finding may add to ticks’ terrifying attributes, this knowledge could also be used to improve antistatic tick defenses.

Persons: ” Sam England, Katie L, Lihou Organizations: University of Bristol Locations: Berlin, England

☆ US house prices may slide as their recent strength and steeper mortgage rates hit demand, Wharton professor Jeremy Siegel says
▼ + stars: | 2023-06-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Home prices may fall as recent gains and higher borrowing costs restrain demand, Jeremy Siegel says. "The higher interest rates and 40% increase in home prices more than doubled the cost of homes for buyers," the retired Wharton finance professor said in his weekly commentary for WisdomTree on Monday. "Mortgage rates had ticked down to 6% a few months ago before rising back above 7% now — so perhaps we see some renewed softness in housing prices," Siegel added. Higher interest rates translate into larger monthly mortgage payments, which mean banks are willing to lend significantly less money to homeowners today than they were a few years ago. "Shark Tank" investor Barbara Corcoran has argued there's a load of pent-up demand, and called for home prices to surge 20% once interest rates fall by two percentage points.

Persons: Jeremy Siegel, Wharton, Siegel, —, WisdomTree, joblessness, Barbara Corcoran, Jeff Greene Organizations: Service, Federal Locations: —

☆ Crypto crackdown: Is there anywhere safe left for crypto investors in the US?
▼ + stars: | 2023-06-06 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

“Look, we don’t need more digital currency,” Gensler told CNBC on Tuesday. “We already have digital currency: It’s called the US dollar. Many crypto investors appear to be abandoning so-called “alt-coins” and sticking with the relatively more reliable OG virtual currency, wrote Ed Moya, a senior market analyst with Oanda. Bottom line: “The SEC looks like it is playing Whac-A-Mole with crypto exchanges,” Moya wrote. Because of that, crypto investors will have to decide whether they are confident that the offerings on various exchanges will remain available to trade.

Persons: CNN Business ’, Binance, ”, Matt Levine, I’ll, Coinbase, Brian Armstrong, Gary Gensler, ” Gensler, “, It’s, Crypto, TD Cowen, Reena Aggarwal, Aggarwal, bitcoin, Ed Moya, ” Moya, —, you’ll Organizations: CNN Business, New York CNN, Securities and Exchange Commission, SEC, CNBC, Georgetown, Psaros, Financial Markets, Chicago Mercantile Exchange, Oanda Locations: New York, United States, “, cryptos

☆ In Richard Ford’s New Novel, One More Trip for Old Times’ Sake
▼ + stars: | 2023-06-05 | by ( Dwight Garner | ) www.nytimes.com time to read: +2 min

In “The Sportswriter,” the first novel in this series, Frank started out as a sensitive young literary man who had published a book of stories. Though the Bascombe novels are set mostly in New Jersey’s wealthier suburbs, they are, oddly, road novels. Springsteen went from “Darkness on the Edge of Town” to “Letter to You.” Holy moly. Ford went from “Independence Day” and “The Lay of the Land” to “Let Me Be Frank With You” and “Be Mine.” Good Lord. The Bascombe novels are road novels, as well, because they are set during holidays, when families are in flux.

Persons: ”, Frank, Ford, yank, John Updike, Roth, Nathan Zuckerman, Angstrom, Bruce Springsteen —, Springsteen Organizations: Toyota Locations: New Jersey

☆ Meta threatens to yank news content from California over payments bill
▼ + stars: | 2023-05-31 | by ( Katie Paul | ) www.reuters.com time to read: +2 min

NEW YORK, May 31 (Reuters) - Facebook parent Meta Platforms (META.O) said on Wednesday it would remove news content in its home state of California if the state government passed legislation forcing tech companies to pay publishers. The proposed California Journalism Preservation Act would require "online platforms" to pay a "journalism usage fee" to news providers whose work appears on their services, aimed at reversing a decline in the local news sector. The statement was Meta's first on the California bill specifically, although the company has been waging similar battles over compensation for news publishers at the federal level and in countries outside the United States. In December, Stone said Meta would remove news from its platform altogether if the U.S. Congress passed a bill that closely resembles the proposed California legislation. Google did not immediately respond to a Reuters request for comment about the California bill.

Persons: Andy Stone, Stone, Katie Paul, Kirsten Donovan Organizations: YORK, California Journalism, U.S, Congress, Google, Facebook, Thomson Locations: California, United States, Canada, Australia

That was the promise of a digital library of movies and TV shows. "Warner Bros. That's why NBCUniversal had to pay itself $500 million to stream Universal TV's "The Office" on Peacock and Warner Bros. Rafael Henrique | Lightrocket | Getty ImagesBy removing the content specifically made for streaming rather than licensed shows and movies, Warner Bros. Warner Bros.

☆ Premarket stocks: This is how the banking crisis ends
▼ + stars: | 2023-05-05 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

London CNN —US regional bank stocks look set to rebound Friday but are still down sharply this week, accentuating fears that federal regulators have not yet contained a crisis in the sector that could shake the financial system. Breaking it down: Wall Street is on the hunt for any signs of vulnerability in the banking system after the high-profile demise of Silicon Valley Bank, Signature Bank and First Republic Bank in a matter of weeks. While authorities stepped in to protect depositors at those banks, investors were left with stocks that were suddenly worthless. “I believe it really only ends after we get some type of government intervention,” Michaud told me. The value of short positions in regional bank stocks reached $15.1 billion in mid-April, up from about $13.7 billion one year ago, according to data from S3 Partners.

☆ Premarket stocks: Why these bank stocks aren't getting crushed
▼ + stars: | 2023-05-04 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

First Horizon (FHN) and TD Bank (TD)also called off a $13 billion deal Thursday that would have formed America’s sixth-largest bank. The Stoxx Europe 600 Banks Index, which tracks big EU and UK banks, has shed 14% over the same period. Year-to-date, European banks are up more than 3%, while US lenders are down 26%. Broader market dynamics have also helped European bank stocks. The European Central Bank, which meets Thursday, has also been slower than the US Federal Reserve to hike interest rates.

☆ Need More Light in the Kitchen? Here’s a Stylish, Adjustable Fix
▼ + stars: | 2023-04-29 | by ( Nina Molina | ) www.wsj.com time to read: +1 min

DOUBLE DIP Landed Interiors & Homes, which is based in New York City, draped a couple of matte-black adjustable pendants above a kitchen island in Piedmont, Calif. Photo: Haris KenjarHAVE YOU ever yearned to yank the ceiling light in your kitchen closer to the radishes you’re julienning? Adjustable pendants can get you out of your own way. London designer Susie Atkinson thrifted a 1960s double adjustable pendant for a local Queen-Anne style kitchen. This discreet concealing trick is still available on some models, but Los Angeles interior designer Martha Mulholland, for one, admires the visible, “industrial meets decorative” look of those with visible ballast. “It’s a design born out of a practical function,” said Ms. Mulholland.

☆ The Fed’s autopsy report on Silicon Valley Bank is coming. Here’s what to expect
▼ + stars: | 2023-04-28 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

The Federal Reserve, which is responsible for supervising banks in the United States, plans to release its report at 11 a.m. Another federal regulator, the Federal Deposit Insurance Corporation, will release a similar report on Signature Bank, which fell two days after SVB, in the afternoon. Those assets began steadily losing value when the central bank raised interest rates at a rapid pace last year. As the bank stumbled, it became clear that virtually all — 97%, according to data from Wedbush Securities — of SVB’s deposits were uninsured. There are indications the Fed, SVB’s primary regulator, warned the bank as early as 2019 about its insufficient risk-management systems, according to reporting from the Wall Street Journal and the New York Times.

☆ Breakingviews: EV double-SPAC provides only weak recharge
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +2 min

Electric-van developer Arrival just unveiled a merger with a special-purpose acquisition company, valuing it at $524 million. The twist: It already went public via a blank-check deal in 2021, at a valuation some 10 times higher. Arrival’s fall mirrors other EV hopefuls like Canoo (GOEV.O), Faraday Future Intelligent Electric (FFIE.O) and Lordstown Motors (RIDE.O). Arrival’s latest merger promises $283 million of it from Kensington Capital Acquisition Corp. V’s (KCGI.N) trust account. British startup Wejo (WEJO.O)tried a similar second-SPAC gambit, though it anticipates backing its transaction with private investment.

Solari wasn't the only American to veer wildly between frugality and all-out spending sprees during the pandemic. In particular, younger people — Gen Z and millennials — have seen the early parts of their careers and critical years of their financial lives defined by the shifting sands of the pandemic economy. The strange pandemic-savings paradoxThe pandemic recession did not actually mean people had no money. The Fed found that the top quartile of earners added nearly $1.5 trillion to their savings through spending reductions, even as the pandemic consumed millennials and Gen Z's savings. If the mantra of the pandemic recession was giving everyday Americans money, the reaction is now to yank that back.

☆ Premarket stocks: What markets are watching after digesting the US jobs data
▼ + stars: | 2023-04-10 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

While inflation has come down and other economic data point to a cooling economy, the labor market has remained remarkably resilient. The labor market is cooling but not rapidly or significantly, and further rate hikes can’t be ruled out. More trouble for commercial real estateA few weeks ago, Before the Bell wrote about big problems brewing in the $20 trillion commercial real estate industry. In a worst-case scenario, anxiety about bank lending to commercial real estate could spiral, prompting customers to yank their deposits. The proportion of commercial office mortgages where borrowers are behind with payments is rising, according to Trepp, which provides data on commercial real estate.

☆ American offices are half-empty. That could be the next big risk for banks
▼ + stars: | 2023-04-10 | by ( Julia Horowitz | ) edition.cnn.com time to read: +9 min

“I’m more concerned than I’ve been in a long time,” said Matt Anderson, managing director at Trepp, which provides data on commercial real estate. About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Questions about the health of banks with sizable exposures to commercial real estate loans cause customers to pull deposits. That forces lenders to demand repayment — exacerbating the sector’s downturn and further damaging the banks’ financial position. The likeliest outcome is thought to be an uptick in defaults and reduced access to funding for the commercial real estate industry.

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