This – Capmark, Big Commercial Lender, May File for Bankruptcy - has the potential to put even more stress the financial markets…not simply because it is a bankruptcy but to long term – commercial banking – c0nnections:

The Capmark Financial Group, the big commercial real estate finance company cobbled together from pieces of GMAC, may file for bankruptcy as soon as this weekend, a person briefed on the matter told DealBook on Saturday.

…

Capmark has about $10 billion in assets, with another $10 billion in a Utah bank the company owns that would not be subject to a bankruptcy filing. Capmark has already moved several hundred million dollars into the bank to shore up its financial health.

Walk through this with me.

1. Capmark Financial is GMAC’s former Commercial Real Estate lender, but GMAC retained their retail banking  and renamed it to Ally.
2. GMAC still retails 25% ownership of Capmark Financial
3. Capmark Financial just had a $1.62B quarterly operating loss
4. Capmark Bank, a sub of Capmark Financial (the company that $posted a 1.62B loss) just obtained an FDIC “raise capital” letter from the FDIC

Add all the things above together and I have to wonder how far off are the failures of Ally and Capmark Bank.  Unless they simply packaged up ALL of the toxic assets and moved them to Capmark Financial, I would have to think both banks are/were involved in driving the losses at Capmark Financial, not just the CRE investments by the parent company.

Related posts:

1. It happened: Capmark Financial goes into bankruptcy
2. In the wake of Capmark, GMAC Asks for Fresh Lifeline
3. CIT debt swap struggles, bankruptcy looms
4. CIT still might face bankruptcy after debt swap
5. GM bankruptcy plan eyes quick sale to government