"Real Estate Losses Shake Banks Once More"

Banks worldwide are facing mounting losses due to their exposure to the troubled commercial real estate sector, with New York Community Bancorp reporting a $252 million loss and setting aside $552 million to absorb loan losses. Japan's Aozora Bank also projected a $190 million loss due to bad loans tied to US offices, while Swiss private bank Julius Baer announced a 55% profit decline due to a $680 million loss on loans made to a European conglomerate. Deutsche Bank allocated €123 million to absorb potential defaults on its US commercial real estate loans, and experts warn of potential contagion but believe big, well-capitalized banks are less likely to be affected.