| Bank United Sold to Private Equity Group |
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The biggest bank failure of the year, Bank United was told as early as April to find a buyer because of its serve financial condition. The bank was hit hard by falling home values in Florida on of the worst area for housing price delclines in the country. The FDIC will share in the losses in $10.7B in assets and will recieve warrent as well as share in the profits if the bank gooes public. The cost to the FDIC is a hefty $4.9B depleating their gund which totaled $53B at the end of Q1. The FDIC said they will have enough captial to deal with potential future bank failures. The FDIC said they will release guidlines for private equity in the future and it is the intention of the private equity group to aquire other troubled banks under the Bank United umbrella.
John Kanas along with a group of high prifile investors will serve as chairman and officers of the new bank.
Charttrader Investment Advisors Miami Florida. The name of the bank will not change and no member of the group will own more than 24.9%. All branches will remain open.
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