The Federal Reserve is currently reviewing banks' exposure to property, the troubled investment sector whose slide could pose a risk to many financial institutions because of the wide distribution of loans and mortgage-backed securities.

In its regulatory role, the Fed will look into a cross-section of banks to build a picture of how resilient institutions are to the falling value of loans and commercial mortgage-backed securities.

A cross-disciplinary team will look at the range of commercial property assets on banks' balance sheets, encompassing loans and CMBS.......

The US property market has been among the hardest hit by the global economic downturn, with questions inevitably being raised over the validity of any potential investment in the country. As a result, ...   more »