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

[girl gone mad]

And So It Begins? Biggest Florida Bank Given 20 Days To Find Buyer Or Risk Shut Down
http://zerohedge.blogspot.com/2009/04/and-so-it-begins-biggest-florida-bank.html">Zero Hedge

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.

[ananda]

1. They gave the same ultimatum to Guaranty Bank last week.

Guaranty has till May 21st to bring its capital
up to acceptable levels or to find a buyer.

Otherwise, they'll be taken over.

[nilram]

2. for comarison, 2.1 billion in assets

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6545843-48993-53821&type=sect&dcn=0001104659-09-024632

It would be interesting to look at the bank closings on a week-by-week basis and total the assets held. Might make for an interesting chart.

[northzax]

3. There have been 25 banks taken over by FDIC this year

Including two this week (they are always announced on Fridays)

And the banks that 'fail' the stress test have six months to find a buyer, technically. In reality, they will be done in a day.

[DemReadingDU]

4. are these pre-notices new?

From what I used to understand, somebody determines a bank is badly performing, and then the FDIC comes in, unannounced, and closes the bank. Since when are banks given '20 days' to find a buyer?

[northzax]

6. OTS and FDIC aren't the same thing

This letter of death (which, if it exists is what it is) is from OTS telling thm they don't think the bank is strong enough. On any given Friday, the FDIC may show up and shut the place down.

[girl gone mad]

7. Here's a link to the letter..

http://www.scribd.com/doc/14393364/Prompt-Corrective-Action-Directive

[SlingBlade]

5. Failed Bank List

Check it out, Read'em and Weep


http://www.fdic.gov/bank/individual/failed/banklist.html