[DEBATE] : US shuts down BankUnited FSB in biggest failure this year
Riaz K Tayob
riaz.tayob at gmail.com
Fri May 22 10:55:23 BST 2009
[Another one bites the dust, and another one... why does this not make
news? Is BigMedia up to its old trix again?]
US shuts down BankUnited FSB in biggest failure this year
The Federal Deposit Insurance Corporation headquarters in Washington,
DC. US regulators on Thursday shut down BankUnited FSB, an ailing
Florida lender, in the largest American bank failure this year.
US regulators on Thursday shut down BankUnited FSB, an ailing Florida
lender, in the largest American bank failure this year.
The Federal Deposit Insurance Corporation (FDIC) said the bank’s assets
had been acquired by a newly chartered federal savings bank, BankUnited.
“BankUnited, the successor institution, will be the largest independent
bank in Florida, as was its predecessor (BankUnited, FSB),” FDIC said in
BankUnited’s 86 offices will be open Friday during normal business hours.
Bank United FSB had assets of 12.80 billion dollars and deposits of 8.6
billion dollars as of May 2.
The new BankUnited will assume 12.7 billion dollars in assets and 8.3
billion dollars in nonbrokered deposits, the statement said.
“The FDIC and BankUnited entered into a loss-share transaction and will
share in the losses on approximately 10.7 billion dollars in assets
covered under the agreement,” it said.
The agreement is expected to “minimize disruptions” for loan customers
as they will “maintain a banking relationship,” it said.
BankUnited will recapitalize the institution with 900 million dollars in
BankUnited, FSB is the 34th FDIC-insured institution to fail in the
United States this year, and the third in Florida. The last bank to be
closed in the state was Riverside Bank of the Gulf Coast, Cape Coral on
BankUnited is the second biggest US bank failure during the current
financial crisis triggered by a home mortgage meltdown, after the
collapse last July of Indymac, a California mortgage bank.
The FDIC insures deposits at the nation’s 8,305 banks and savings
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