It's no surprise that banks have been stuck with a lot of bridge loans that they never expected to carry. By one estimate, the backlog is well over $330 billion, concentrated at the big-name banks and representing a minor threat to earnings. Now the debate has begun about what the best next move would be. Breakingviews.com suggests banks should take the hit now. It seems clear that some losses will have to be taken. The best course of action might be to mark down the value of loans and sell it quickly at whatever price does the trick. That at least gets it off the balance sheet and frees up capital for other endeavors.

For more:
- here's an article from Breakingviews.com