The news at a glance

Commercial real estate: A big lender falls

Capmark, 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 to 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 businesses of all sizes have also stifled demand for office space.

Capmark’s troubles could be a grim portent of commercial real estate’s future, said Dawn McCarty 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 leading 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.”

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Financial services: ING’s crash diet

ING, the Dutch financial services conglomerate, has agreed to sell its insurance and investment management businesses, said Michael Steen in the Financial Times. The move was “prompted by intense pressure from the European Commission.” The Dutch government lent ING $15 billion last year, after the firm recorded heavy losses on U.S. mortgages. The European Commission, which frowns on state subsidies to private companies, demanded that ING repay the aid quickly. ING will also sell ING Direct USA, its U.S. Internet bank.

The Madoff case: Favored investor found dead

Jeffry Picower, a close associate of disgraced financier Bernard Madoff, has died of a heart attack while swimming in his Palm Beach, Fla., pool, said Brian Skoloff in the Associated Press. Picower, 67, had recently been sued on behalf of Madoff investors seeking the return of $7 billion in bogus profits. The suit alleges that Picower, whose annual returns from Madoff sometimes exceeded 100 percent, should have known that the investment scheme was a “blatant and obvious fraud.” The suit will continue despite Picower’s death.

Mutual funds: Legg Mason’s new investor

Nelson Peltz, whose investments range from diamonds to fast food, has joined the board of mutual fund firm Legg Mason, said Peter Lattman in The Wall Street Journal. Peltz, with a 4.3 percent stake in Legg Mason, had “pushed for a board seat.” Legg Mason, with about $700 billion under management, “is beginning to recover from a brutal two-year stretch” of poor investment results. Peltz is known for buying shares of laggard companies and “agitating for changes.”

DVDs: Disney offers Baby Einstein refunds

In the wake of studies suggesting that videos can impair learning in young children, Disney is offering refunds to buyers of its popular Baby Einstein videos, said Amy Graff in the San Francisco Chronicle. “Disney made the expensive concession after being threatened with legal action” for claiming that the videos had educational benefits. A study by researchers at Washington University found that infants exposed to Baby Einstein videos scored about 10 percent lower in language skills. Disney, which since 2004 has sold tens of millions of the DVDs, is offering refunds of $15.99 a video for as many as four videos per household.