FDIC Seizes And Sells BankUnited

ited FSB, Florida's largest regional bank, was seized by the Federal Deposit Insurance Corp. (FDIC), and its operations were immediately sold to a private investment team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank. 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, according to the FDIC. BankUnited will not assume the approximately $348 million in brokered deposits. The FDIC will pay the brokers directly. According to the Associated Press, the closure of BankUnited FSB is expected to cost the FDIC $4.9 billion, making it the agency's second largest hit since the financial crisis began. (The largest was the 2008 seizure of IndyMac cost the FDIC an estimated $10.7 billion.) SOURCE: F


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