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banking industry faces challenges as integration efforts and hiring slow down
Citi's Michael Lavelle has been appointed vice chairman of lending after three decades, while Blackstone's Joseph Baratta and Michael Chae join the ranks of billionaires. UBS's Mike Dargan received a $12m loan to aid in the complex integration of Credit Suisse, as the demand for junior bankers dwindles amid a challenging work environment. Meanwhile, HSBC faces pressure in equities trading, with US banks increasingly dominating the market.
commercial real estate faces challenges as valuations stabilize and sales increase
Investors sought to withdraw nearly $780 million from a $9.4 billion fund but received only $31 million, prompting the fund to market properties amid a challenging real estate environment. Redemption restrictions may last until mid-2025, as the sector faces a protracted recovery with varying asset valuations, particularly in the troubled office sector. Despite rising default rates, lenders are showing patience, and property values are stabilizing, especially in residential and logistics sectors, while transaction volumes remain at a decade low.
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