Capmark Financial files for bankruptcy

Did a quick search and did not see this yet. If it is confirmed on here please mods remove this.

Capmark Financial files for bankruptcy

Capmark Financial files for bankruptcy

Not sure just how huge this is, but from What I've read and the looks of it, this could be the start of the actual bursting of the real estate bubble.

Now I know there have been ALOT of talk about the Web-bot, and TMW pointing to today and tomorrow as being big. I cant really speak on that as, I do have general knowledge about both, but do not claim to be an expert on either.

But I wanted to post this here anyways to get the feeling from everyone here just how big this could be.

Thoughts?
Opinions?

Did a little looking and it looks like a 360 BILLION servicing portfolio.
Thats has the potential to scare alot of people.

It was interesting to see Goldman Sachs in the ring on this one too. What do you wanna bet they're going to profit massively from the destruction of this company like they did CIT Group, which loans out to over a million small to mid size businesses.

Goldman collected a huge chunk of change from the collapse of CIT as illustrated in this thread:

Goldman Sachs: Profitting from CIT's Demise-and the Collapse of the US Job Market

[edit on 26-10-2009 by projectvxn]

Capmark’s holdings include a banking unit based in Salt Lake City with $11.1 billion in assets. Deposits stood at $8.4 billion on June 30, according to the company’s quarterly statement.

Capmark posted losses in North America, Asia and European units during the quarter and raised the provision for bad loans to $345.8 million from $10.4 million.

Capmark is one of the largest U.S. commercial real estate finance companies, with more than $10 billion of originations in 2008 and a servicing portfolio exceeding $360 billion.




[edit on 10/25/0909 by Trayen11]

the manure could hit the fan tomorrow in the markets...the fed and treasury are working overtime today, that's for sure...christ, escrow closes next friday on a property i sold...hope the buyer doesn't get cold feet and cancel. this could be THE snowball that starts rolling from the top of the hill toward the bottom, getting bigger on the way down. lots of loans now up in the air.
i can practically see the panicked look, and smell the sweat rolling down the armpits of investors. SELL, BABY, SELL!!! CNBC will be in rectum-clenching mode tomorrow morning.

[edit on 25-10-2009 by jimmyx]

I'm sure we will see Bernake around tomorrow making a push for some cahs so he can drain it into the real estate sector to "keep them going"

You guys do realize that Capmark is one of the largest carriers of commercial real estate loans...

Capmark Financial originates, services, and invests in mortgages for commercial real estate including office, retail, health care, hospitality, and multifamily properties. It also invests in real estate and commercial mortgage-related assets for institutional and high-net-worth investors. Capmark Financial has some 50 offices in North America, Europe, and Asia. The company originates more than $10 billion in commercial mortgages each year and its servicing portfolio has more than 48,000 loans worth approximately $350 billion. Its investment business has more than $8 billion in assets under management.

www.google.com...


BTW... they are a privately held company. No market symbol.


The banking side of it is already being farmed out to Berkshire Hathaway and is unrelated to the bankruptcy filing.

Capmark, formerly GMAC LLC's commercial real-estate arm, recently reported a second-quarter loss of $1.6 billion and signaled it may seek bankruptcy protection. The company will file this weekend, The Wall Street Journal reported in its online edition, citing an unnamed source.

An investor group comprised of KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners bought the company from GMAC in 2006. The group owned about 75% of the company, while GMAC and its employees owned the rest, according to the report, citing data through March 31.

Horsham, Pa.-based Capmark is selling its bank operation to Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) and Leucadia National Corp. (NYSE:LUK) , but the bank would not be part of the bankruptcy filing, according to the report.

www.marketwatch.com...


FYI :: Berkshire Hathaway => Warren Buffet

NYSE:BRK.A closed trading on Friday at $100,600 per share.


Nothing like picking up the prime cuts and tossing the rest in the trash.




[edit on 25-10-2009 by RoofMonkey]

This too: found in Bloomberg coverage on Capmark bankrupcy breaking news coverage:BloombergLink

"According to today’s court documents, $7.1 billion is owed by the company and its units to the 30 largest creditors without collateral backing their claims.

The three biggest are Citibank N.A., as administrative agent under the $5.5 billion credit agreement, with a claim of $4.6 billion; Deutsche Bank Trust Company Americas, as trustee for the 5.875 percent senior notes and the floating senior notes due 2010, with claims of $1.2 billion and $637.5 million, respectively; and Wilmington Trust FSB, as successor trustee for the 6.3 percent senior notes due 2017, with a claim of $500 million, according to court papers. "

Oh Dear...

[edit on 25-10-2009 by curioustype]

'Not so fast there Wilbur'...

WILMINGTON, Del., Oct 27 (Reuters) - A bankruptcy judge on Tuesday rejected plans by Capmark Financial Group Inc for a Saturday bid deadline for its mortgage servicing business, which it has proposed selling to Berkshire Hathaway Inc (BRKa.N) and Leucadia National Corp. (LUK.N)

Judge Christopher Sontchi said during Capmark's first bankruptcy hearing the company must wait until after creditors have formed a committee, planned for Monday, before asking for a bid deadline.

Capmark is one of the largest U.S. commercial real estate services companies, and now one of the biggest victims of the rapidly declining commercial real estate market. The company filed for bankruptcy on Sunday with $21.0 billion in liabilities and $20.1 billion in assets.

www.reuters.com...