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Uptown construction project 300 South Tryon has officially been postponed due to financing issues. Atlanta based construction company Spectrum Properties cited the downturn in the housing and credit markets as the primary reason for the delay. Across town Portman Holdings postponed the One Charlotte project and stated that the "sub prime-lending crisis and unstable credit markets" contributed to the decision.

All told the current downturn in large commercial construction projects isn't a surprise since the industry seemed to defy gravity as the residential market dropped precipitously. While many speculated that declining demand might hamper larger development projects few anticipated the outright shock the tightening credit market would have on project financing. One thing is for certain though, the credit market will need to recover before these projects can get back on track.

Uptown condo project postponed

Construction of Spectrum Properties' office and condo development at Tryon and Third streets, scheduled to begin this month, has been delayed.

Darryl Dewberry, chief executive of Spectrum, cites the volatility of the financial markets. He says he doesn't know how long the 32-story project will be delayed but it may be started this year.

The $200 million development, dubbed 300 South Tryon, is slated to have 150 units in its first phase. Prices will range from $200,000s to more than $1.5 million.

Residential construction giant Beazer homes said that it would cease operations in 7 major cities. The exit comes in a most abrupt manner with phone lines disconnected, websites offline and a lingering uncertainty surrounding the high profile Morehead Common project. Rumor has it that an Atlanta based developer has expressed interest in purchasing the Morehead tract which includes former city landmark The Coffee Cup restaurant.

This announcement comes on the heels of several other high profile construction cancellations in Charlotte including the 300 South Tryon project uptown. In both cases developers are citing the downturn housing and tightening credit markets. The fate of these postponed construction projects remains uncertain, but given current market conditions it's likely that some will postpone indefinitely.

Beazer to exit Charlotte market

Beazer Homes USA Inc. will stop originating mortgages and cease home-building operations in Charlotte and several other cities.

Atlanta-based Beazer, which was Charlotte's 15th-largest home builder in 2006, also will stop building houses in Cincinnati, Columbus and Dayton, Ohio; Lexington, Ky.; and Columbia, S.C.

The company says it intends to complete all homes under construction.

A large cut and a huge chunk of the investment bankers who were slated to reside in a brand new New York office. As the credit and broader financial environment continues to deteriorate expect more layoffs and companies failing to meet earnings expectations.

Bank of America to cut 650 jobs, sell a brokerage

Bank of America Corp (BAC.N) said on Tuesday it would eliminate 650 corporate and investment banking jobs and sell its prime brokerage unit, as the second-largest U.S. bank retrenches in the face of difficult credit market conditions.

The cuts affect about 12 percent of capital markets and investment banking workers, and follow a review announced in October, when Chief Executive Kenneth Lewis said, "I've had all of the fun I can stand in investment banking."

Tomorrow promises to be bad news all around. Several of the largest financial institutions are expected to report large losses or poorer than expected performance. What this will do to the market is a guess, but I think in the short term this may undermine consumer confidence as thousands are laid off and everyone else continues to see a slide in real estate.

Economists, armchair and the like, hate to make bold predictions but I'll go out on a limb and say that the economy will become a huge issue politically before we find out who'll take up residence in the White House for the next four years.

Bad bank earnings: Prepare for the flood

Sometimes when it rains, it pours on Wall Street. And this week forecasters are calling for a flood.

Starting Tuesday, Wall Street will most likely find itself drowning in a torrent of dreary earnings news from some of the nation's biggest banks, marking yet another grim milestone for the troubled financial sector.

"It's not going to be a pretty sight," said Frank Barkocy, director of research at the investment advisory firm Mendon Capital Advisors in New York, which owns shares of a number of large banks including Bank of America and Washington Mutual.

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Citigroup may cut thousands of jobs: report

Citigroup Inc (C.N), the largest U.S. bank, may eliminate 17,000 to 24,000 jobs and write off as much as $24 billion for subprime and other credit losses, as part of a plan to cut costs and add capital, CNBC television said on Monday.

The write-down and job cuts may be announced on Tuesday, CNBC said, when Citigroup is widely expected to report the largest quarterly loss in its history.