Elizabeth Warren on Commercial Real Estate
Elizabeth Warren is the Leo Gottlieb Professor of Law at Harvard Law School -- where she teaches contract law, bankruptcy, and commercial law -- and has devoted much of the past three decades to studying the economics of middle class families. In the wake of the 2008-9 financial crisis, she became the chair of the Congressional Oversight Panel created to investigate the U.S. banking bailout (formally known as the Troubled Assets Relief Program). In that role, she has provided a critical check on the U.S. Department of the Treasury and has been a leading advocate for accountability and transparency.
Ms. Warren, in the video below, continues to wave the red flag that bank balance sheets have not been cleaned up and that toxic assets are still sitting on the books. In addition, as the banking industry continues to consolidate, the concentration of risk is greater than it was before the crisis, creating distortions throughout the economy. In her words - "We're seeing banks that don't want to lend because they see every dollar that comes in the door and say I've got to hold on to it to try to fill my commercial real estate hole or else I will be gone."