Banks Sneak Back Into CRE Lending Through Private Equity Firms

Where there's a buck to be made, Wall Street will find a way. New regulation, known as Basel III Endgame, requires large financial institutions to hold significantly more capital in their reserves than before to prevent bank failures. The rules are aimed at reducing risk-taking by banks, which includes lending to real estate.  But instead of being held back, those institutions have turned to private equity to do their lending for them.