Banks at risk in Minnesota from commercial real estate crisis

  • Article by: CHRIS SERRES , Star Tribune
  • Updated: January 11, 2010 - 11:03 AM

Experts fear more bank failures in 2010 with the commercial real estate meltdown finally hitting home for many Minnesota banks.

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purplepigJan. 10, 1012:01 AM

formermarineJan. 10, 10 1:57 AM

It should state "More banks at risk in Minnesota from commercial real estate crisis". I read nothing in this article to lead me to believe this is due to the housing crisis. Also, I hope this doesn't mean another bail out for the banks. Let them fail! Who in their right mind lends to someone in Miami or Phoenix when they are based out in the remote areas of Minnesota? Bad lending should not be rewarded with taxpayer dollars. I hope it doesn't come to that.

elagrewJan. 10, 10 3:43 AM

This clearly shows that the main problem was not the everyday Jo and Joseph worker like we have been led to believe who are the problem in this financial "crisis", but rather the main problems were the banks themselves who did not follow safe and prudent lending. When you or I do not make sounds economic decisions, we pay the price by having to work harder, scrimp and save more or in extreme case, declare bankruptcy. What do the banks do...the very institutions we look to for common-sense and down-to-earth, practical financial stability? They put out their hand to the government fountain (that's us folks), yell "Do Over!'. They then give multi-million dollar bonuses to the very people who caused this mess in the first place. I think that some of these rascals need to be sent to prison and that the so-called "Banks", which it turns out, were nothing but a social club for the rich and infamous, take their lumps like everyone else expects them to.

stickmanJan. 10, 10 4:16 AM

That's the post of the year and couldn't be more "right on"! If I own a car dealership and credit customers to gain sales, and they don't pay me because they didn't deserve credit to begin with, I have to eat my own crap. But if you're a bank, the taxpayers will bail you out. That is pure BUNK. I'm tired of bailing out failures so they can pad their own pockets!

angevgenJan. 10, 10 6:31 AM

"they did it because they are over regulated" And we thought they did it because they were greedy and crooks.... No risk all reward? no wonder there is a bank on every corner in our small town.

montanarayJan. 10, 10 6:47 AM

Thanks formermarine for pointing out the sloppy journalism head writing. Blaming me for what my sister did. What does this do with residentual? And Palin is again an airhead. It was the lack of supervision of regulations that got us into this mess.

joeeeeeeJan. 10, 10 6:52 AM

you guys are far off the mark when you cite bankers as if they all were getting multimillion dollar bonuses like the huge money center banks. You're confused and that confusion apparently makes you irritable and irrational. The need to prop up the huge money center banks sprang from the neccesity to act or face even larger, more costly, more damaging systemic failure. Not good but neccesary. Some irresponsible actors didn't get the results they deserved but it doesn't make any sense to cutoff your nose to spite your face. If you pray for banks to fail, I guess you mean other banks, not your bank. But remember that the taxpayers back all banks and have an interest in banks that do fail. Every bank that has failed and been taken over, then sold to another operator, but with a cost to the taxpayer to protect the deposits of people just like you. I think that you need to devote your time to praying that no bank has to be closed and that the economy will revive. Your hopes for revenge in some small way is counterproductive and costly.

DacotaJan. 10, 10 7:04 AM

... goes to whomever runs against"The Chosen One" next time!!!

richieJan. 10, 10 7:17 AM

Will go to the chosen one because he is trying to fix the problems were caused by the un-chosen one

csjohnJan. 10, 10 7:59 AM

No gun to their head, a small bank in central Minnesota lends money to a developer in Phoenix or Miami? Now has no money to lend for local merchants and businesses? Its hard to paint any sympathy into this story. Fundamentally, the same problem with large banks: what looked like easy money was just a string of bad deals. If there is a sorrowful part to this dilemma is that these banks will be allowed to fail. But lets not over regulate CITI or BofA. (sarcasm)


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