BankUnited Closed by Regulators, Assets Sold to Kanas-Led Group

[FarCenter]

Source: Bloomberg

May 21 (Bloomberg) -- BankUnited Financial Corp., the ailing Florida lender, was shut by regulators and its assets were sold to private-equity firms including WL Ross & Co. and Carlyle Group in the largest U.S. bank failure this year.

The group’s purchase was the “least costly” resolution, the Federal Deposit Insurance Corp. said in a statement today.

BankUnited, based in Coral Gables joined 33 banks and at least five credit unions that have gone under since January. Former North Fork Bancorp Chief Executive Officer John Kanas led buyers that also included Blackstone Group LP and Centerbridge Capital Partners LLC.

BankUnited had $8.7 billion of deposits, regulators said. The failure will cost the FDIC $4.9 billion, the regulator said.

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See also press release

http://www.fdic.gov/news/news/press/2009/pr09072.html



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aYaBqsIrCmac&refer=home

[SoCalNative]

1. And it's not even FDIC Friday yet!

Hmmmm....

[Old Coot]

2. I wondered about that. Wonder what gives? nt

[TacticalPeek]

3. Bale up some taxpayer cash and throw it at the problem.

[FarCenter]

4. So far this is FDIC cash

But a $4.9 billion loss to the FDIC Insurance Fund on a bank with a supposed $12.8 billion in assets is outrageous.

This was a savings bank supervised by the Office of Thrift Supervision, who appear to be totally useless as regulators.