Capmark files for bankruptcy

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Commercial real estate lender Capmark Financial Group has filed for bankruptcy. The group’s filing for Chapter 11 protection yesterday came on the heels of mounting speculation that Capmark, a former subsidiary of GMAC, was in severe financial distress. The group plans to retain Richards, Layton & Finger, along with New York City-based law firm Dewey & LeBoeuf, as its legal council. Capmark had said in a court filing that it had $20.1 billion in assets and $21 billion in liabilities as of June 30, according to the New York Times. Last month, the group reported a $1.62 billion quarterly loss, raising concerns among industry analysts that the troubled commercial real estate market may plunge further into distress.

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