Regional banks are also under pressure from the overhang of the commercial real estate downturn, part of the reason why management commentary will be just as, if not more, important than second-quarter figures.
Most of his address followed the usual lines, explaining that the economy was improving but that weak job growth and the overhang stemming from housing and real estate markets would continue to be a drag on the recovery.
She has also been encouraging the development of the German real estate market, which suffered from a construction overhang post-reunification but is now seeing interest from hedge funds.