A potential collapse in the commercial real estate sector, the largest since 2008, could hit U.S. banks with up to $160 billion in losses. What Happened: A working paper from researchers at USC, Columbia, Stanford, and Northwestern has assessed the impact of sustained high-interest rates on the commercial real estate industry and the U.S. banking system, reports Business Insider. The study, “Monetary Tightening, Commercial Real Estate Distress, and US Bank Fragility,” used a model to analyze the effects of the Federal Reserve’s aggressive rate hikes in 2022 on assets such as stocks, bonds, and…
