– CRE Crisis Goes Global: Shares Of Japan’s Aozora Bank Implode On Massive US CRE Exposure:
Following a profit warning from New York Community Bancorp on Wednesday, partially attributed to turmoil in the commercial real estate sector, Japan’s Aozora Bank Ltd. slashed the value of some of its US office tower loans by a staggering 50%.
New York Community Bancorp’s move to slash its dividend and bolster reserves led to a 38% plunge in its shares yesterday, also triggering the largest drop in the KBW Regional Banking Index since the collapse of Silicon Valley Bank last March.
US Property Losses Trigger 20% Plunge in Japanese Bank Aozorahttps://t.co/VZiDAZrhH6 https://t.co/DOlz0ZobbF
— zerohedge (@zerohedge) February 1, 2024
Aozora wrote down the value of its non-performing office loans by 58%, including a 63% reduction in Chicago and between 51% and 59% in New York, Washington D.C., Los Angeles, and San Francisco – all of these cities are plagued with violent crime and controlled by radical Democrats.
US office loans totaled about 6.6%, or approximately $1.89 billion. It said 21 office loans worth $719 million were classified as non-performing. It increased its loan-loss reserve ratio on US offices to 18.8% from 9.1%.
Several months ago, we pointed out: “Next bank failure will be in Japan.”
Next bank failure will be in Japan https://t.co/51eCSNZeIh
— zerohedge (@zerohedge) October 3, 2023
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