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SUNDAY, NOVEMBER 22, 2009
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Feds Seize Florida Bank in $4.9B Bust

BankUnited sold off to private equity consortium

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(Newser) – 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.

For Sale signs line the front yards of several houses in a Hollywood, Fla., neighborhood.
For Sale signs line the front yards of several houses in a Hollywood, Fla., neighborhood.   (AP Photo/Marianne Armshaw)
The Federal Deposit Insurance Corp. was appointed receiver of Florida's BankUnited yesterday.
The Federal Deposit Insurance Corp. was appointed receiver of Florida's BankUnited yesterday.   (AP Photo/Wilfredo Lee)
Stephen A Schwarzman, chairman and CEO of Blackstone Group. Blackstone is part of a consortium that has acquired BankUnited, the failed Florida bank.
Stephen A Schwarzman, chairman and CEO of Blackstone Group. Blackstone is part of a consortium that has acquired BankUnited, the failed Florida bank.   (AP Photo/Osamu Honda)
FDIC Chair Sheila Bair\ listens to a question on Capitol Hill earlier this month.
FDIC Chair Sheila Bair\ listens to a question on Capitol Hill earlier this month.   (AP Photo/Alex Brandon)
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SPH
May 22, 09 4:59 PM CDT
Please stop your self-promotion....
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TerrifiedCitizen
May 22, 09 11:46 AM CDT
I know... the above self-promotion is a bit tedious, however, Robert has a point. Although it would no doubt make BigBiz turn over in their close to the grave position, we probably need to learn to live a bit more frugally. Reply
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