Bank Watch: Capmark Financial Pours $600 Million into its Ailing Bank

CoStar.com

October 7, 2009

Capmark Bank, the wholly-owned Utah industrial bank subsidiary of Capmark Financial Group Inc., agreed to a cease and desist order with each of the Federal Deposit Insurance Corp. (FDIC) and the Utah Department of Financial Institutions. The orders require Capmark Bank to maintain a Tier 1 leverage ratio of at least 8% and a Total Risk-Based Capital ratio of at least 10%.

Within 45 days, Capmark Bank must also submit a capital plan to the regulators and may not make any extensions of credit, or increase the amount of its brokered CDs.

In order to support the capital position, Capmark Financial Group said it has made a $600 million capital contribution to Capmark Bank — $494.2 million in cash and $105.8 million in servicing advances.

Capmark Bank reported $11.1 billion in assets as of June 30 and net loss of $261.3 million.

Capmark Bank’s nonperforming loans and foreclosed property assets increased by nearly $240 million from the first quarter to the second quarter and now totals nearly $631 million. About 78% of those assets are related to commercial real estate.

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3 Comments on “Bank Watch: Capmark Financial Pours $600 Million into its Ailing Bank”


  1. […] minds are reading Bank Watch: Capmark Financial Pours $600 Million into its Ailing Bank Capmark Bank, the wholly-owned Utah industrial bank subsidiary of Capmark Financial Group Inc., […]


  2. […] minds are reading Bank Watch: Capmark Financial Pours $600 Million into its Ailing Bank Capmark Bank, the wholly-owned Utah industrial bank subsidiary of Capmark Financial Group Inc., […]


  3. […] minds are reading Bank Watch: Capmark Financial Pours $600 Million into its Ailing Bank Capmark Bank, the wholly-owned Utah industrial bank subsidiary of Capmark Financial Group Inc., […]


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