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Lehman had spent the last five years amassing a huge commercial property loan book.
Anglo Irish Bank was nationalized in 2009 after a scandal that added to already mounting property loan losses.
Such a company manages a property loan when the borrower is in danger of falling into default.
Under Help to Buy, rolled out in March, the government either offers interest-free credit or guarantees part of the property loan.
A banking crisis then forced Madrid to negotiate a European bailout to keep afloat lenders weighed down by property loan defaults, sending Spain back into recession.
The Spanish economy was then hit by a banking crisis that forced Madrid to negotiate a European bailout to keep afloat Bankia and other lenders weighed down by property loan defaults.
Similar(36)
To cool a credit boom, the authorities forced banks to hold more cash reserves and put ceilings on property loan-to-value ratios as alternatives to raising interest rates (which might attract yet more footloose money).
FINANCIAL TIMES Blackstone in Talks for Property Loan Portfolio | The Blackstone Group is negotiating with Société Générale over the sale of about $130 million of commercial property loans, The Financial Times reports, citing unidentified people involved in the deal.
§ 510.1 Multi-family property loans.
The bank's bad property loans are a particular headache.
The banks grew rapidly and piled on property loans.
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