by Calculated Risk on 8/07/2008 03:18:00 PM

From Bloomberg: Deutsche Bank to Foreclose on $3.5 Billion Casino

Deutsche Bank AG will foreclose on the $3.5 billion Cosmopolitan Resort & Casino in Las Vegas after developer Ian Bruce Eichner defaulted on a $760 million loan ... Deutsche Bank ... is talking with companies including MGM Mirage and Hilton Hotels Corp. to help run its 80,000-square-foot casino ...

Sagging commercial real estate prices ... forced banks to hold projects until prices rise or sell at a loss. The Frankfurt-based bank would oversee an 8.5-acre development with two high-rise towers, three wedding chapels, a sandy beach overlooking the Las Vegas Strip and a deck featuring ``European-style bathing.''

This seems like one of those 'from the frying pan into the fire' stories - from gambling on CRE loans to running a gambling joint.

And I'm always amazed by the "waiting for a better market" argument. That is what many residential lenders did during the last couple of years, only to discover their losses kept growing.