Another Failed Bank – BankUnited in Florida
May 22, 2009 by Stephen Kersey
Filed under Business
The number of failed banks in the United States in 2009 rose once again when it was announced that BankUnited has been taken over by federal regulators. BankUnited represents the 34th bank to fail in 2009 that was protected by the FDIC.
In total loses by the FDIC, this was the second largest bank failure of the year. Only IndyMac Bank of California has totaled a larger loss. In all, reported indicate that BankUnited will cost the FDIC nearly $5 billion. IndyMac Bank’s failure had a price tag of more than $10 billion.
This failure is unique in that it was sold to a private investor group for approximately $900 million. That investor group will be led by John Kanas, the former CEO of North Fork Bancorp and will include investor firms including the Carlyle Group, Blackstone Group and Centerbridge Partners.
If you have an account with BankUnited, which was located in Coral Gables, Florida, the FDIC said you can continue using your debit cards and checks like usual. The new bank will under the private investor group will still be called BankUnited.
FDIC (Image: Flickr)
At this time of recession, it is not surprising that anther bank like BankUnited has experienced huge loss. Banks in the US provided flurry of loans (specially home loans) and now they are suffering as loan receivers are struggling to repay the loan with interest. Banks should have followed stricter rules in providing home loans.