Banks Try Auctioning Assets to Avoid Major Loss

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MIAMI-As banks watch a historic moment in the American financial system unfold, commercial real estate assets are being auctioned off in order to avoid fall out. Last week companies like Wachovia Corp. were looking to liquidate assets, but now that Wachovia has merged with New York City-based Citigroup Inc., all eyes are scanning for the next big bank move.

Ohio-based National City Corp. also looked to liquidate assets last week, and today was down 57% on the New York Stock Exchange. “There are a number of regional banks which may need help, either because of the weakening mortgage market or simply because of the weakening economy,” Michael Sheldon, chief market strategist, RDM Financial Group, told Reuters Monday.