Saturday, April 18, 2009

And So It Begins? Biggest Florida Bank Given 20 Days To Find Buyer Or Risk Shut Down

The biggest financial institution in Florida, $14 billion BankUnited of Coral Gables, was told by its regulator, the Office of Thrift Supervision, to find a buyer who would raise its depleted capital to acceptable levels or risk a government takeover. In an ominously sounding "prompt corrective action directive", the OTS has essentially given the bank a 20 day ultimatum. If Florida's biggest bank is on the hook, at a potential maximum taxpayer cost of $14 billion, maybe the stress test will not be just the fluff everyone is now expecting it to be. Then again, Citi, with its $3 trillion in assets, being told to find a buyer in under three weeks, may not be the most amusing notion for Vikram Pandit and Sheila Bair.

PS. Now that Goldman is a "retail" bank, don't they need a dpositor base? Anyone know the Stardust odds are on GS acquiring BankUnited in the next 2-3 weeks (with a loss sharing contract with the FDIC in place of course)?

Prompt Corrective Action Directive zerohedge

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