Good morning. The Securities and Exchange Commission is questioning some community and regional banks about their exposure to commercial real estate in their loan portfolios, as potential losses on the loans could spur them to further cut lending.

The SEC released four letter exchanges in the past week or so in which it questioned smaller financial firms about their CRE exposure in loan portfolios. The SEC last year sent letters to banks to request more clarity in their disclosures around the potential consequences from the failures of First Republic Bank, Silicon Valley Bank and Signature Bank.

Banks are falling under the regulator’s spotlight increasingly around the effects of the CRE credit crunch, which threatens to trigger failure for banks highly concentrated in property debt.

Rising interest rates and high vacancies have pushed the commercial-property sector into a tailspin, as lending shrinks and borrowers face a record amount of looming maturities and the prospect of defaults. Small and medium-size banks originated loans on many commercial buildings, meaning they could face losses for years. Many lenders are evaluating any possible impacts to their property-loan portfolios and the loans they make to other real-estate creditors. Financial regulators are watching whether the CRE losses will bleed into the broader financial system, echoing aspects of the 2008-09 financial crisis.

Publicly traded financial firms Alerus Financial and the holding companies behind Mid Penn Bank, Ohio Valley Bank and MainStreet Bank were among those that received letters the SEC made public in recent weeks.

• SPAC Mania Is Dead. The SEC Wants to Keep It That Way.

🗓️ Earnings

• American Airlines Group
• Blackstone
• Comcast
• Sherwin-Williams
• Southwest Airlines
• Union Pacific
• Visa

📈 Economic indicators

• The Census Bureau reports new-home sales for December.
• The European Central Bank announces its monetary-policy decision.
• The Bureau of Economic Analysis releases its advance estimate of fourth-quarter gross domestic product growth.

Tesla warned of slower growth in 2024 without sharing a specific target, signaling more uncertainty ahead for the world’s most valuable automaker.

The company reported fourth quarter net income more than doubled year-over-year to $7.9 billion, largely due to a one-time tax benefit. However, its income from operations was down 47% and its quarterly revenue came in shy of analysts’ expectations.

• Chipotle Mexican Grill said it plans to hire 19,000 workers to keep up with what it calls burrito season and offer new benefits to attract younger people.
• British billionaire Joe Lewis pleaded guilty to securities-fraud charges, resolving an insider-trading case in which prosecutors accused him of tipping off pilots, personal assistants and romantic partners about companies in which he invested.
• Swiss financial regulator Finma appointed European Central Bank executive Stefan Walter as its new head.
• The federal government has spent $12.82 billion in the last two years helping low-income households pay for internet service. Almost a quarter of it has gone to one company: Charter Communications.

📰 More headlines

• The Disney Sequel Bob Iger Never Wanted
• Bill Ackman, Neri Oxman Buy Stake in Tel Aviv Stock Exchange
• Apple Plans New Fees and Restrictions for Downloads Outside App Store
• Insurers Rake In Profits as Customers Pay Soaring Premiums
• S&P 500 Notches Fourth-Straight Record High

He will continue as CFO until May 31, or until the appointment of a permanent successor. Sportradar said it initiated a search for its next CFO and expects to announce the appointment prior to Griffin's departure.

— Denny Jacob contributed to this newsletter.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics ranging from corporate tax accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team is reporters Kristin Broughton, Mark Maurer and Jennifer Williams-Alvarez, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.