This has been blowing in the wind for a while, but finally on Sunday Bloomberg reported that Capmark Financial Group (who used to be GMAC Commercial Holding Group) has filed for Chapter 11 bankruptcy protection after a second-quarter loss of about $1.6 billion.
They are one of the largest US commercial real estate lenders, and it seems they owe $7.1 billion to 30 of their largest debt holders, without having any collateral to back their debt. The biggest three of that group are Citibank N.A., Deutsche Bank Trust Company Americas, and Wilmington Trust FSB.
If the commercial real estate market goes the way of the residential real estate market, things won't get any better for a longer time, as trickle-down always happens.
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