(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:
http://www.bloomberg.com/apps/news?pid=20601206&sid=a3gUU6GQaGZo&refer=realestate
FDIC credit line increase story.
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