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 © 2013 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] Recent action saw the major averages drop to fresh lows as broad-based selling pressure persists. The S&P 500 trades lower by 0.7% with all ten sectors hovering in the red.
The industrial space (-1.1%) has been a notable leader of the weakness as defense contractors and transports lag. The PHLX Defense Index is lower by 1.1% while the Dow Jones Transportation Average holds a loss of 1.2%.
It should be noted that today's weakness among transports comes after ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
Forget the gloom-and-doomers. Here's what will drive the ascent in the new year.