Thursday, May 21, 2009

FDIC Crams Down Shareholders, Carlyle Group's Bid Wins BankUnited

The FDIC shuttered BankUnited, zeroing out equity holders. It then sold the firm's assets to a consortium including The Carlyle Group, a private equity underwriter (PEU).

The deal will cost the FDIC $4.9 billion. How much deal financing did Uncle Sam provide? Bloomberg's piece didn't say. Washington BizJournals said Carlyle & company "invested $900 million in a new depository institution acquiring the operations of BankUnited."

Thirty three banks and five credit unions failed since January 2009. PEU's can buy a majority stake in credit unions and savings & loans, thanks to a recent Obama administration change. It's unclear if the Fed will apply the same rule to banks.

IndyMac was sold to a consortium of shadow bankers, hedge funds & PEU's. BankUnited is the second bank to land in the hands of the greed & leverage boys.

How long before corporate raiders turn to captive banks for deal financing?