Fallout from the subprime bust

Dean Foust

Much ink has been spilled on the number of subprime lenders that have failed (and if you're keeping score at home, the Implode-O-Meter provides an up to the minute list.), only now are observers starting to question whether there's going to be fallout in other sectors. The last housing bust, of course, took down the S&L industry. Commercial banks in recent years have assured Wall Street that they were adequately diversified between consumer, business and mortgage lending, but this chart on the Calculated Risk blog (a really good housing site, with lots of meaty analysis) suggests that to compensate for weak C&I lending, banks went whole hog on real estate lending.

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