Friday, August 13, 2010

BankUnited Planning IPO

The Carlyle Group, Wilbur Ross, Blackstone Group and Centerbridge Partners selected underwriters for a BankUnited independent public offering (IPO). According to Bloomberg underwriters include Bank of America, Deutsche Bank AG, Goldman Sachs and Morgan Stanley.

The FDIC recapitalized BankUnited via a $4.9 billion subsidy. Carlyle and company have owned BankUnited 15 months. Recall concerns over private equity underwriters holding banks a short period of time before cashing in? Where does 15 months fit?

Once public, will BankUnited acquire other banks? Let the government supported windfalls continue. It's a shame some people are making big money off public assistance.

Update 9-12-10: Bloomberg reported on "plans to raise more than $500 million" via the IPO, said people with knowledge of the matter. The initial public offering would raise capital for acquisitions, while "returning some cash to the owners."  WSJ reported on who got rich from BU's IPO.