Barry Sternlicht, CEO of Starwood Capital Group, has voiced concerns about the vulnerability of regional and community banks in the U.S. to high interest rates and inflation, particularly amid the commercial real estate downturn. He forecasted frequent failures of these banks, predicting: “You’re gonna see your regional bank fail … every week, maybe two a week.” The billionaire believes that the Federal Reserve would lower interest rates, stating that the regional banking system, specifically the $1.9 trillion in real estate loans, is currently quite fragile, and lowering rates could infuse capital into those banks.
Billionaire Barry Sternlicht Foresees Banks Failing Every Week in US
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