Monday, June 23, 2008

Banks Leaving Las Vegas

Las Vegas Construction loans are among the largest in the industry, and have put a strain on some banks with high exposure. Although the commercial real estate industry seems surprisingly healthy given the current residential meltdown, some banks are still suffering under the pressure.

This Bloomberg story notes how building continues as banks joust for control of a major Las Vegas project:

1 comment:

Anonymous said...

In residential construction a builder will often utilize his own funds and then make use of a bank's committment irrespective of any downturn in the market. Construction continues by the builder simply because he is using the bank's money and might as well forge onward hoping for a turnaround.
Its a bit different with casino construction but then ofcourse with the banks so eager to actually foreclose rather than workout deals it shows that the banks understand the long term value of the assets.