The good news is that these two banks were relatively small. The FDIC will be out approximately $275 million following the failure of Citizen National Bank and Strategic Capital Bank. To compare, BankUnited reportedly will cost the FDIC nearly $5 billion.

According to multiple reports, Citizens National Bank branches will become Morton Community Bank branches, while Strategic Capital Bank branches will become Midland States Bank branches.

The FDIC, which gives as much as $250,000 insurance on deposit accounts, recently said it expects the bank closures over the next five years to come at a cost of more than $64 billion.

How many banks will run out of money in 2009? (Image: Flickr)

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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)

Post from: EveryJoe

Another Failed Bank – BankUnited in Florida