Will Commercial Real Estate be Next??

The impending fall of commercial real estate will take a heavy toll on firms with exposure to commercial property loans and mortgage-backed securities, such as Bear Stearns (BSC), Citigroup (C), JPMorgan (JPM), Lehman Brothers (LEH), Merrill Lynch (MER) and Morgan Stanley (MS). Goldman Sachs analyst William Tanona thin ks the above firms will write down $7.2B in Q1, and projects commercial real estate values will slide 21-26% over the next two years.