Federal regulators closed BankUnited of Coral Gables-2009’s largest bank failure.
Miami, FL(JusticeNewsFlash.com)–United States federal regulators closed failed BankUnited of Coral Gables, Florida. BankUnited, the biggest bank headquartered in Florida, was closed by the Federal Deposit Insurance Corporation (FDIC) regulators after faltering from loans made in the housing boom as reported by the Sun Sentinel.
BankUnited’s inability to survive marks the nation’s largest bank failure this year. FDIC regulators appointed new owners and say all deposits are secure. Palm Beach, Broward, and Miami-Dade have nearly $150 billion in customer deposits at BankUnited. The failing BankUnited checks, ATM cards, and debit cards remain valid. Bank executives reported losses of $1.2 billion in 2008, and the FDIC agreed to share in BankUnited’s losses of $10.7 billion in assets with the new owners. The government’s deal will cost the FDIC insurance fund $4.9 billion and unfortunately shareholders equity could be lost.
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