Feds Seize Florida Bank in $4.9B Bust

BankUnited sold off to private equity consortium
By Jason Farago,  Newser Staff
Posted May 22, 2009 5:05 AM CDT
Feds Seize Florida Bank in $4.9B Bust
For Sale signs line the front yards of several houses in a Hollywood, Fla., neighborhood.   (AP Photo/Marianne Armshaw)

Florida's BankUnited went bust yesterday as the FDIC seized the critically undercapitalized bank and sold it off to a private-equity team including Blackstone, reports the Wall Street Journal. BankUnited's troubles stemmed from overeager moves in the housing market. It specialized in loans for foreigners wanting to buy Florida property. After Indymac, BankUnited is the largest bank failure since the start of the financial crisis. The already weakened FDIC reckons the bust will cost it $4.9 billion.
(More BankUnited stories.)

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