According to Federal Deposit Insurance Corp. Chairman Sheila Bair, troubled commercial real estate loans are hurting both large and small banks alike. Bair also says that CRE mortgage woes are in many ways “even more pronounced” than those in the residential market.

Bair made the comments during this afternoon’s speech at the Commercial Mortgage Securities Association’s annual conference in New York.

FDIC-insured banks now hold the largest share of mortgage debt and their exposure is “at historic highs.” As of September, CRE loans backed by income-producing properties - nonfarm, nonresidential properties or multifamily real estate - totaled $1.3 trillion, or nearly 18% of total loans and leases. Banks and thrifts also held almost $500 billion in construction and development loans.

It seems that every 5 minutes some commentator on the major business news networks mentions that smaller banks are the ones most at risk from CRE loans. But Bair threw cold water on that notion.