real estate loans

Bank of America and Well Fargo are expected to post losses while Morgan Stanley is seen reporting a profit on Wednesday. Less certain is what the newly minted CEOs at BofA and Morgan Stanley are going to tell investors about vision and strategy.

Lending money to people to build and buy real estate is a risky business that periodically costs taxpayers huge amounts of money. Not only do taxpayers lose as a result of all the tax incentives associated with real estate, but they also pay when the banks that make bad real estate loans go...