Thursday, June 27, 2013

Carlyle's BankUnited Subsidy Totals $5.9 Billion

The Carlyle Group and its PEU brethren received $5.9 billion in subsidy for taking over BankUnited.  When the FDIC struck the deal it gave PEU sponsored BankUnited $2.2 billion in cash, instantly making it one of the best capitalized banks in America.  The FDIC sent another $3.7 billion to cushion losses, bringing the total subsidy to nearly $6 billion.  That's almost half of PEU BankUnited's current $12.7 billion value. 

Also, Carlyle Group co-founder David Rubenstein spent $630,000 on a newsprint version of the Declaration of Independence.  It's called patriotic philanthropy.  Make billions from Uncle Sam, use the proceeds to pick up rare historical items, loan them for public display while they remain in Rubenstein's name and grow in value.