BankUnited FSB was seized on Thursday and is expected to cost the FDIC around $4.9 billion, marking the 2nd biggest FDIC hit after IndyMac last year.
Depositors and customers of the thrift bank need not worry, as it is being re-opened today under the name "BankUnited" as a chartered savings bank, with investors such as the Blackstone Group. Is it just me or has the Blackstone Group quickly become the most dominant vulture capital firm around?
The structure of Thrift Banks sets them up to be the worst hit by the mortgage default crisis, as they are bound by law to have at least 65% of their lending in mortgages and consumer loans.
The market is basically shrugging this news off today, with the PHLX Bank Index ($BKX) currently down around -0.80% and the Regional Bank ETF KRE actually up on the day.
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