Commercial RE Weakness = Lots o' Bank Failures
Great post at Calculated Risk.
Short story: while big banks gorged on crappy residential real estate over the past decade or so, smaller banks gorged on "safe" commercial real estate loans. Delinquency rate on these is skyrocketing, so we'll likely see these small fry failing in big numbers over the next year.
Now we know why some of the small banks out there with their "safe" commercial RE portfolios took the TARP money, I suspect.