Tuesday, October 26, 2010

BankUnited to Join Bedbugs in Invading New York?

WSJ reported:

BankUnited, the Florida bank acquired last year by private-equity firms, has set its eye on territory far from the Sunshine State: If it has its way, it will take Manhattan.

In about two years, the bank hopes to be in Manhattan, through acquisitions or branch openings; such a move would combine two of the nation's most attractive deposit markets, New York City and Florida. 

First bedbugs, then BankUnited.   Somehow, this seems appropriate for a PEU sponsored bank.  (PEU stands for private equity underwriter)..

Update 10-27-10:  It turns out BankUnited already had a presence in New York, via a $1 billion mortgage securitization.  Who holds liability for any fraud committed by the old BankUnited?  Is that part of Sheila Bari's $4.9 billion subsidy?   Surely, Carlyle & company didn't take on that risk.  That would put a damper on their $500 million IPO, expected to return "some cash" to investors.  As the S-1 is not yet available, details are unknown.  Many see the IPO as potential egg on Sheila Bair's face.

Update 5-31-11:  BankUnited may enter New York via an acquisition, Herald Bank.