The Congressional Oversight Panel (COP) today held its third hearing focusing on the health of Commercial Real Estate (CRE) and resulting bank risk. Federal regulators, including the Fed’s Patrick Parkinson, stated that the deterioration of CRE has leveled off, even though it continues to be a drag on the overall economy. David Wilson of the OCC stated in written testimony that the OCC is considering new standards for CRE concentrations, and added under questioning that the Fed, OCC and FDIC were in the early stages of putting out guidance on stress testing. This report analyzes today’s session.
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