Atlanta Fed president sees U.S. housing troubles spreading to office and retail segments.
Word of another wave of mortgage-related pain added to investor unease Monday after a top Fed official warned that American real estate troubles will go commercial this year. Nearly all asset classes took a hit for the day, with only the dollar showing appreciable gains.
Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said he was concerned that U.S. banks remain “pretty heavily exposed” to commercial real estate. “It is the one domestic factor that keeps me up at night,” he said.