Fate Sealed for BankUnited
BankUnited just took over BankUnited (BKUNA), and its not even Friday. The Florida-based BankUnited Financial saw a number of bidders swirling this week, as the bank looked for buyers after receiving a ‘deal or die’ directive from the Office of Thrift Supervision. And, as sources originally told HousingWire, the winner is WL Ross & Company, funded by a consortium put together by billionaire investor Wilbur Ross. (That the newly-formed bank is taking the name of the bank it is assuming is sure to confuse a few of us.) The Federal Deposit Insurance Corporation (FDIC) brokered the deal. BankUnited's 86 offices will be open tomorrow during normal business hours. BankUnited, the successor institution, will be headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank. Kanas had been hired by the Ross group in recent weeks, in anticipation of the acquisition. While depositors may be happy to know their concerns are FDIC insured, loan holders will need to continue to pay back debt. The move will be disappointing to at least one shareholder, who shared his thoughts on the matter with HousingWire earlier this week: "I am very concerned that the FDIC will seize BankUnited and the shareholders will be wiped out completely," he said. "I sincerely cannot believe that the FDIC in good faith would accept an offer or bid under the condition to wipe out the equity of the shareholders and seize the bank." Incredulity aside, BankUnited's assets are $12.8bn and deposits are $8.6bn as of May 2. According to a statement from the FDIC, the new BankUnited will assume $12.7bn in assets and $8.3bn in nonbrokered deposits. The FDIC and BankUnited entered into a loss-share transaction and will share in the losses on approximately $10bn in assets covered under the agreement. The new BankUnited will recapitalize the old BankUnited with $900m in new capital, as well. The new BankUnited will not assume the approximately $348 million in brokered deposits. The FDIC will pay the brokers directly, it said. Write to Jacob Gaffney.