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Saturday, October 24, 2009

Capmark Bank: Utah's $10 Billion Dollar Bust

Reports are out today today that Capmark Financial Group, the owner of Utah's Capmark Bank in Midvale, may file for bankruptcy before Monday.

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






2 comments:

  1. 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.

    ReplyDelete
  2. Thanks 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!

    ReplyDelete

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