Small banks having difficulty repaying TARP

Despite reports that on the whole the program is doing fine, a surprising number of small banks may not be repaying TARP loans as agreed to. 

A article indicates what most of us in the industry already know; that smaller regional and community banks are the ones who hold a majority of commercial real estate loans.  Many of these loans will come due in the next four years and with commercial properties valued at up to 40% below below their value at loan origination, many of these banks will not be around in the future.  This will have a greater impact in secondary markets where access to institutional capital is non-existent and interest from larger lenders is lacking due to low loan-size and volume.

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