One the U.S. largest commercial real estate lenders filed for bankruptcy. Capmark had:
consolidated debt of $21 billion and consolidated assets of $20.1 billion as of June 30 in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Interesting side note - KKR - leveraged buy-out firm - which had an interest in Capmark wrote down its interest to ZERO value back in March.
This doesn't look good for the commercial real estate market. I hope for our sakes this is not the next tsunami because that will only set US (certainly not the financial oligarchy) back even further. Good luck.
very much what I was thinking
I think the CRE is much smaller than Residential but what the implications also are for business is another thing.
This is assuredly a 2nd shoe, but how big of a foot, I'm not clear on.
My concern is that smaller banks and regional banks
are going to bear the brunt of CRE crisis and if that's the case this won't bode well for lending to small and medium size businesses.
RebelCapitalist.com - Financial Information for the Rest of Us.
RebelCapitalist.com - Financial Information for the Rest of Us.
major events missed on EP
I was out on business and then got very ill (am still sick) but a series of major policy events have been happening.
One is to divert TARP funds to smaller and regional banks.
I'm still very lightweight in the blogging because I'm too ill to add much that is coherent.