A bankruptcy filing is expected real soon now (if it hasn’t already happened) for Capmark, a huge commercial real estate lender that was created when KKR, Goldman and others bought GM’s commercial real estate business. KKR has already written their investment down to zero. Yes, zero.
A subsidiary, Capmark Bank, is also wobbling badly while Warren Buffett, vulture-like, circles the corpse-to-be.
But prosperity, we are assured, is just round the corner.