One of the nation's largest commercial-real estate lenders, plans to file for bankruptcy

Capmark Financial Group Inc., one of the nation's largest commercial-real-estate lenders, plans to file for bankruptcy as soon as this weekend, a person familiar with the situation said. The much-expected move underscores the deep problems in the business-property market. After suffering from the collapse in residential mortgages, U.S. banks face steep losses from commercial real-estate loans. Capmark has originated more than $10 billion in commercial real-estate loans, according to Moody's Investors Service.

WSJ

Of course they announce this when the markets are closed.

Could this be large enough to bring another huge dip in the market Monday?

This is unsurprising, and perfectly on track. The commercial Real Estate bubble is the next to pop after home real estate, it was only a matter of time. Once this one goes, there's no stopping the downward spiral.

Originally posted by D.E.M.
This is unsurprising, and perfectly on track. The commercial Real Estate bubble is the next to pop after home real estate, it was only a matter of time. Once this one goes, there's no stopping the downward spiral.

Those that have been aware and following the financial meltdown having been waiting for the other shoe to drop and now we have it.

Wonder what the green-shoots and bubble gum crowd will have to say about this?

This all just gets better and better...lets see what we have...

CIT will probably fall...there goes 1M? Business funding accounts?

Capmark is going down...$10B in Commercial Funding...that article says the have a big bank in Utah? tied to them also?

And then this...

Lazard Asset Management Fund Dumps The Dollar
www.istockanalyst.com...

[edit on 10/24/2009 by Hx3_1963]

reply to post by lucentenigma


If they had a large portfolio of lending to REITs then a good bit of malls &/or apartments might be going into bankruptcy as a result...

for the last 12+ months a lot of REITs found the necessary Loan money which their regular 'Loan' bankers failed to provide from Other Sources,
and this firm may have been one of those outside sources.
~just trying to see what may lay ahead~

Originally posted by St Udio
reply to post by lucentenigma

 

If they had a large portfolio of lending to REITs then a good bit of malls &/or apartments might be going into bankruptcy as a result...

for the last 12+ months a lot of REITs found the necessary Loan money which their regular 'Loan' bankers failed to provide from Other Sources,
and this firm may have been one of those outside sources.
~just trying to see what may lay ahead~

Exactly, a lot of the mega banks have been posting profits but what you have to dig to find is that they are making profits from one-time sales of assests and such.

Also, the malls and shopping centers in my town are already 'ghost towns'.

Originally posted by St Udio
reply to post by lucentenigma

 

If they had a large portfolio of lending to REITs then a good bit of malls &/or apartments might be going into bankruptcy as a result...

for the last 12+ months a lot of REITs found the necessary Loan money which their regular 'Loan' bankers failed to provide from Other Sources,
and this firm may have been one of those outside sources.
~just trying to see what may lay ahead~

Exactly, a lot of the mega banks have been posting profits but what you have to dig to find is that they are making profits from one-time sales of assests and such.

Also, the malls and shopping centers in my town are already 'ghost towns'.

I'm not for sure if any of you remember this story from last week---interesting timing....

www.washingtonpost.com...

If you don't remember, Bruce Wasserstein, the 61 year old head of Lazard died from an irregular heartbeat unexpectedly last week. He was the husband to Angela Chao, sister to Elaine Chao the former Sec of Labor under Bush. He was worth over 2 billion dollars.

And there were...connections.

dealbook.blogs.nytimes.com...

Wasserstein ran quite a successful investment boutique called Wasserstein/Perella. In 1999 the Chicago branch of the company had a new director that brought in new clients and seal deals.

The name of the director?

RAHM EMANUEL

reply to post by Jessicamsa


Wow thanks for that Jessica, the rabbit hole goes pretty deep doesn't it?

One thing is for sure if the markets tomorrow look untouched by this news then we know that manipulation is in high gear.

Thanks for the news Lucerntenigma, this deserve to be on our market data thread.

This big!!!!!!!!

Just stop by and post the link if you can. to this thread.

reply to post by marg6043


...Speaking of which, we got this post in that thread earlier today:

Originally posted by Vitchilo

Resolution Authority ASAP

yglesias.thinkprogress.org...

Both in answering the question and in his prepared text, Mr. Bernanke again beseeched Congress to act soon to give regulators “resolution authority” to cope with the imminent collapse of a big financial firm other than a bank, and to address other vulnerabilities in the regulatory regime exposed during the crisis.

Hmmm.




[edit on 25/10/09 by pause4thought]

reply to post by lucentenigma


Monday is certainly going to be interesting isn't it?

The thing that really gets me, is that the major players don't wait until morning, they'll be scouring for news tonight, ready to get one step ahead the moment they can make a move to secure their finances.

These people know all too well how the media is down-playing, they were the ones to pull out of the market previously when the media was pushing the "green shoots" and "recovery" lines.

With the chatter the way it is this weekend, if we are seeing it all, so are they. They're likely seeing the same reports we have been over today and yesterday, and they'll likely have some more insider knowledge too.

I have to say, for the first time, I'm planning to go to a cash machine early morning and taking out as much as I can.

I'm in the UK, but the way I see it is, if there is a real risk of a market crash when the US starts trading, it would send a shock wave through global banking that really could lead to an immediate shut-down.

Originally posted by detachedindividual
reply to post by lucentenigma

 

Monday is certainly going to be interesting isn't it?

The thing that really gets me, is that the major players don't wait until morning, they'll be scouring for news tonight, ready to get one step ahead the moment they can make a move to secure their finances.

These people know all too well how the media is down-playing, they were the ones to pull out of the market previously when the media was pushing the "green shoots" and "recovery" lines.

With the chatter the way it is this weekend, if we are seeing it all, so are they. They're likely seeing the same reports we have been over today and yesterday, and they'll likely have some more insider knowledge too.

I have to say, for the first time, I'm planning to go to a cash machine early morning and taking out as much as I can.

I'm in the UK, but the way I see it is, if there is a real risk of a market crash when the US starts trading, it would send a shock wave through global banking that really could lead to an immediate shut-down.

Yup it should be an interesting day, as marg said if there is an uptick in the market it will be by mere manipulation.

Anyone that has played the financial markets for awhile know that manipulation is part of the game, when I was day trading with a lvl II account I got to witness it first hand.

Make sure you watch the Asian markets when they open in a few hours, I will be keeping a close on on them.

www.bloomberg.com...#

They filed...bubble #2 is about to burst!!!

reply to post by pause4thought


I wonder if this financial institution will be bail out also, things are going to be very interesting tomorrow.