Bank Stress From Empty Offices a ‘Slow Moving Train,’ Barr Says
- Fed’s Michael Barr says effects likely to extend for few years
- Vice chair speaks at event in Washington on Wednesday
This article is for subscribers only.
The Federal Reserve’s Michael Barr warned that banks are likely to continue to face stress from the struggling commercial real estate sector for an extended period.
The vice chair for supervision said the overall banking system was “sound and resilient” and didn’t face the same kind of pressures that it did in March 2023, when Silicon Valley Bank and Signature Bank collapsed. However, he said empty office space remains an area of stress.