By Mark Huffman
ConsumerAffairs.com
May 22, 2009
BankUnited FSB lost its battle to stay afloat this week as the Federal
Office of Thrift Supervision closed the 86-branch Florida lender and
transferred its deposits to a newly charged bank, also called
BankUnited. The Federal Deposit Insurance Corporation facilitated the
transfer.
The new bank is controlled by private equity firms, including the Carlyle Group and WL Ross & Co. UnitedBank is the largest U.S. bank failure so far this year.
The new BankUnited will be the largest independent bank in Florida, as was its predecessor, BankUnited, FSB. The management team is headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank. Deposits will be insured by the FDIC.
Customers can continue to use BankUnited, FSB's checks, ATM cards and debit cards, FDIC said. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Bank United, FSB had assets of $12.80 billion and deposits of $8.6 billion as of May 2, 2009. The new BankUnited will assume $12.7 billion in assets and $8.3 billion in nonbrokered deposits.
The FDIC and BankUnited entered into a loss-share transaction and will share in the losses on approximately $10.7 billion in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets by keeping them in the private sector, the agency said.
The agreement also is expected to minimize disruptions for loan customers as they will maintain a banking relationship. BankUnited will recapitalize the institution with $900 million in new capital.
BankUnited will not assume the approximately $348 million in brokered deposits. The FDIC will pay the brokers directly. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.
The FDIC facilitated the transaction with John Kanas and a consortium of investors after BankUnited, FSB, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC estimates that the cost to its Deposit Insurance Fund will be $4.9 billion.
