BankUnited collapse biggest this year
Discribed as "critically undercapitalized."
The new owners include WL Ross & Co., Blackstone Capital Management, Carlyle Investment Management and others. BankUnited, whose failure is the 34th for a bank this year, has $12.8 billion in assets, $8.6 billion in deposits and 86 branches. Last year, 25 banks failed.
Thrifts must have at least 65% of their lending in mortgages and other consumer loans, which has made them susceptible to difficulties and failure amid the mortgage-market meltdown. BankUnited specialized in a unique type of mortgage made to people living outside the U.S. who wanted to buy property in Florida. The housing slump has weighed heavily on Florida; the state suffered a 37% jump in foreclosures in April from March, the second-highest foreclosure rate in the U.S. Home prices fell 59% in the Cape Coral-Fort Myers, Fla., area in the first quarter, the steepest decline among the 152 metropolitan areas polled by the National Association of Realtors.
BankUnited's failure will cost the Federal Deposit Insurance Corp. about $4.9 billion. Last year's failure of IndyMac cost the FDIC $10.7 billion. Washington Mutual, which had $307 billion in assets, was the biggest thrift to collapse; it went under in September, at the height of the financial crisis, and was later bought by JPMorgan Chase (JPM, news, msgs).
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'