Posted on 10/25/2009 9:13:58 PM PDT by Newtoidaho
CHICAGO - Capmark Financial Group, one of the largest U.S. commercial real estate lenders, has filed for bankruptcy protection amid mounting bad debt, becoming the latest casualty in the still turbulent U.S. real estate market.
Capmark has been hurt by rising losses on mortgage loans, and has had to foreclose on properties such as the Equitable Building in Atlanta because borrowers were not able to make loan payments. In its bankruptcy filing Sunday in Delaware bankruptcy court, the company listed total debt of $21 billion and assets of $20.1 billion. It seeks to reorganize under court protection, reducing its debt while continuing to operate its businesses.
http://enews.earthlink.net/article/bus?guid=20091025/4ae3db50_3426_133502009102532684505
(Excerpt) Read more at enews.earthlink.net ...
other shoe to drop in 4..3..2..
We just drove past their headquarters this evening - they’re in the neighboring township. I never knew they were so big. Not good.
I just dealt with a freeper who did not believe that the taxpayers were left holding the bag for the bailouts.
Gang get ready. This much bigger than the residential mortgage crash. The community organizer in chief is in way over his head on this one again. Think yet another visit to your local ammo store....
The blog Zero Hedge I believe stated on Friday this was going to occur this weekend. Not good.
So what is a person to do? Hold off on purchases and keep cash that is losing in value daily? Buy hard assets that at least be worth something if you have to sell them in the future? Do a little borrowing, knowing that you will be paying off the debt in cheaper dollars? This is all so confusing and disheartening.
Its a real mess. But, I’d rather owe them than have them owe me...
Good point. We are thinking of leasing a vehicle, and I hate to enter into any kind of contract right now, but the positives could outweigh the potential negatives. Who knows what kind of awful vehicles D.C. is going to force automakers to manufacture over the coming years?
Lease the vehicle. If inflation goes through the roof, they’ll be happy to take the car back and you’ll be happy to pay devalued dollars each month to keep the lease in place. Just don’t buy long bonds...
Thank you so much for the good advice!
That shoe would be the commercial real-estate industry.
It all goes back to that BS statement that they were forced to make loans. Leveraging a bank 400 to 1 is not force, it's lets roll another loan and make $9,000, AIG insured it, there is no downside, we cannot lose. No concept of supply and demand!!
bump
This story is being buried in the US news.
Here’s a longer story with more detail in a UK paper:
Capmark Financial files for bankruptcy
http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6890198.ece
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