Drunk Real Estate
E50: It Feels Like A Recession & Bank Issues Brewing
Jun 5, 2024
Podcast hosts discuss misconceptions about generational wealth, concerns about economic slowdown indicators, and divergent views on banking sector stability. Banter includes confusion over Super Bowl 50 and Americans' perception of the economy, as well as joking about recording on a private jet for their 50th episode milestone.
01:18:30
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Quick takeaways
- Bank of America sells loans under regulatory pressure but at a low discount, indicating potential profitability for buyers.
- Concerns about commercial real estate risks are managed with expectations of minimal losses, contrasting with media alarm.
Deep dives
Bank of America's Purchase of Multifamily Loans from Washington Federal Bank
Bank of America's acquisition of approximately 2,000 multifamily loans from Washington Federal Bank for $2.9 billion raised concerns about softness in the banking sector. The sale was prompted by Washington Federal Bank's need to reduce exposure to commercial real estate due to regulatory pressures. By selling these loans at about a 9% discount, Washington Federal Bank aimed to address balance sheet thresholds that regulatory agencies were monitoring.
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