by Calculated Risk on 11/08/2008 04:27:00 PM

From Bloomberg:Ranieri Becomes Victim of Crisis as Franklin Seized

Lewis Ranieri, who helped create the mortgage-securities market in the 1980s while at Salomon Brothers Inc., became a victim of its collapse after his Houston-based bank was seized.
...
``The residential side was not their problem, it was clearly the commercial side,'' said David Lykken, co-founder of Mortgage Banking Solutions, an Austin, Texas-based consulting firm. ``The reason it took a little longer is because that trailed residential,''

This is a key point: Many of the bank failures will not be directly from residential, but from Construction & Development (C&D) and commercial real estate (CRE) loans.