What About Commerical Real Estate (CRE)?

Briefly, CRE loan defaults are adversely affecting smaller regional banks that up until now had  successfully weathered the recent economic storms.

From Calculated Risk (more here):

'This is a story we've discussed for a few years, but it is probably worth repeating: Small and regional banks couldn't compete in the residential mortgage market during the housing bubble (with some exceptions), so they focused on Construction & Development (C&D) and other Commercial Real Estate (CRE) loans. The C&D loans are defaulting in large numbers now and this is impacting a number of regional banks (like BankUnited and Corus).'