Capmark is a giant commercial real estate lending bank. Total assets are over $10 Billion in its Utah subsidiary alone. You can read more about the banks problems here.
This bank failure is the sound of the "other" shoe dropping. Except, there are many more "other" shoes to drop in the future. You can review the list of problem Utah banks for yourself (from CR table):
| Barnes Banking Company | Kaysville | Written Agreement | ||||||
| CIT Bank | Salt Lake City | Cease & Desist | ||||||
| Capital Community Bank | Provo | Cease & Desist | ||||||
| Capmark Bank | Midvale | Cease & Desist (Media Report) | ||||||
| Centennial Bank | Ogden | Cease & Desist | ||||||
| First Utah Bank | Salt Lake City | Written Agreement | ||||||
| Liberty Bank, Inc. | Salt Lake City | Cease & Desist | ||||||
| Prime Alliance Bank | Woods Cross | Cease & Desist | ||||||
| Transportation Alliance Bank, Inc. | Ogden | Cease & Desist | ||||||
| Utah Community Bank | Sandy | Cease & Desist | ||||||
| Western Community Bank | Orem | Cease & Desist |
I wonder how this will effect the local housing market. I suspect many of these troubled banks will be rapidly selling off even more REO's to help cover the costs of their "unhealthy" loans. I predict at least another year of a good buyers market.
ReplyDeleteThanks for the post Katey. I anticipate buying will stay good as long as unemployment stays high. From what I see on the horizon, it may be a buyers market for another 4-6 years!
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