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Largest US Banks Face $48 Billion Commercial Real Estate Loan Loss, Fed Says

Worries About Industry's Health Prompt Decision to Rethink Capital Plans, Halt Share Repurchases, Cap Dividends

The Federal Reserve Building in downtown Washington D.C. (iStock)
The Federal Reserve Building in downtown Washington D.C. (iStock)

The nation’s largest banks are facing a possible $47.6 billion loan loss on commercial real estate over the next two years in the worst-case scenario for economic fallout from the coronavirus, according to the latest stress test results from the Federal Reserve Board.

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