Thursday, May 21, 2009

Failure Thursday?

(2 tables above: bad banks on the left, failures on the right. please click to expand)

It has finally happened:

BankUnited, FSB Closed

BankUnited will be the successor bank, acquired and run by a private equity consortium. WE PAID FOR THIS PEOPLE. PRIVATE EQUITY GETS A SWEETHEART DEAL ON OUR BACKS.

The Deposit Insurance Fund is estimated to take a hit of $4.9 billion on this one. That brings the 2009 loss to over $10.3 billion. The FDIC reported a balance of just under $19 billion at the end of 2008.

It is a good thing Congress approved a credit line of up to $500 billion for the FDIC. That is what I mean about insuring your own deposit. If (When) the FDIC taps that line, the Treasury must issue debt to front the cash.

Failure #34 is a big one folks, another one off the Bad Banks list.

1 comment:

MK said...

FDIC credit line increase story.