Sandie O’Connor will speak shortly about the ARRC’s work, but I want to emphasize that this has been a model of cooperative effort between the private sector and the public sector. When the ARRC started, the interest rate benchmarks that they would eventually narrow their choice down to did not even exist.
Given the checkered history of commercial real estate lending and its increased relevance to many banks, this portfolio must be monitored and managed carefully. We have seen before the cyclical nature of commercial real estate and its links to the general level of economic activity.