On September 1, 2009, Lingling Wei wrote an article for the Wall Street Journal highlighting the “time bomb” looming in commercial banking. More than $1 trillion of commercial property mortgages are losing value, and according to Deutsche Bank, total lifetime losses are expected to be between 11.6% and 15.3%.

On September 8, Ilaina Jonas wrote in Reuters that, according to Real Estate Econometrics, commercial mortgage defaults are projected to peak in 2011. In 2Q09, delinquent balances fell by $2 billion, and nonaccrual balances increased by $6.5 billion.