"The FDIC might fail, requiring a federal bailout, dragged down by the failure of regional banks with substantial commercial mortgage debt, Andrew W. Lo warned.
Mr. Lo, founder and chief investment strategist of AlphaSimplex Group and a finance professor at the Massachusetts Institute of Technology, said that a failure to restructure debt on Stuyvesant Town-Peter Cooper Village — the vast New York apartment complex — could cause New York banks holding its debt to collapse. The value of the property reportedly has dropped more than $3.2 billion since it was acquired in 2006 for $5.4 billion by Tishman Speyer Properties and partners."
While a bailout is assured, this would be enormous news!