Biggest Commercial Lender Files Chapter 11

Commercial Real Estate: Campmark, one of the nation's biggest commercial property lenders, has filed for chapter 11 bankruptcy protection, said Mike Spector and Lingling Wei in the Wall Street Journal. The company listed $21 billion in debt. Capmark "has been one of the biggest lenders in the U.S. investors and developers of office towers, strip malls, hotels and other commercial properties." With the recession crimping retail sales and business travel, many of its commercial borrowers have defaulted on their loans. Widespread layoffs by business of all sizes have also stifled demand for office space. Campmark's troubles could also be a grim portent of commercial real estate's future, said Dawn McMarty in Bloomberg.com. "Losses from commercial real estate lending pose the biggest threat to U.S. banks as the loans deteriorate," federal banking officials say. Mall developer General Growth Properties filed for bankruptcy protection earlier this year, and lending developers such as Tishman Speyer, whose showcase properties include the Chrysler Building and Rockefeller Center, are being hurt "by plunging values and a dearth of credit."