"Office Meltdown: US Regional Banks Feel Real Estate Pain"

Investors are increasingly concerned about the exposure of regional banks, particularly New York Community Bancorp, to commercial real estate loans, with fears of more pain ahead due to the impact of the COVID-19 pandemic and rising interest rates. Short-sellers are betting against banks with significant commercial real estate exposure, and some banks may consider options such as selling loans at a loss to reduce their concentration in this area. Delinquency rates on commercial mortgage-backed securities are expected to rise, and the default rate on New York's rent-stabilized housing has increased, adding to the challenges faced by these banks.