Can someone pay a visit to this reporter?? Maybe u can explain that the date was extended to the 14th?? Way to create more panic.. Two days in a row..
May 13, 2009, 2:09 p.m. EST
BankUnited slumps 32% on FDIC receivership warning
Florida bank says it missed regulatory deadline for raising up to $1 billionExplore related topics
Banks BankUnited Financial Corp Corus Bankshares Inc
SAN FRANCISCO (MarketWatch) - BankUnited Financial shares slumped 31% Wednesday after the Florida bank warned that it could be forced into receivership by the Federal Deposit Insurance Corporation because it missed a regulatory deadline to raise as much as $1 billion in new capital.
BankUnited entered into an agreement with the Office of Thrift Supervision on April 14 that required the lender to meet certain minimum capital levels. At the end of March, the bank needed between $706 million and roughly $1 billion to meet those targets, according to a regulatory filing late Tuesday.
The deadline to raise that capital expired May 4. That leaves the bank "subject to regulatory enforcement actions, including the Federal Deposit Insurance Corporation receivership," BankUnited added in the filing.
BankUnited shares slumped 31% to $1.11 during afternoon trading Wednesday.
The stock has rallied in recent weeks on hopes that the bank may be acquired. In February, the Financial Times reported that distressed debt investor Wilbur Ross and private-equity firm the Carlyle Group were considering a joint bid for BankUnited.
In its late Tuesday filing, BankUnited said it's been trying to raise capital at the holding company level for more than a year. The company has since switched to focus on getting capital to support its main bank subsidiary.
"No assurance can be given that we will be able to raise capital at either the Bank or the holding company level," the company warned. "In addition, a recapitalization of the Bank without a simultaneous recapitalization of the holding company would reduce or eliminate the Company's ownership in the Bank, thus raising substantial doubt about the Company's ability to continue as a going concern."
BankUnited, based in Coral Gables, just south of Miami, Florida, has been hit hard by the real estate slump in the state.
Other banks active in Florida are also suffering. Chicago-based Corus Bancshares /quotes/comstock/15*!cors/quotes/nls/cors (CORS 0.68, -0.23, -25.27%) , which was a leading lender for condo construction in cities including Miami, warned on May 1 that banking regulators may place it into "conservatorship or receivership."
BankUnited expects a fiscal second-quarter loss of $443.1 million, or $12.55 a share, versus a loss of $65.8 million, or $1.88 a share, a year earlier. The increased losses were partly driven by big provisions to cover losses in its portfolio of option adjustable-rate mortgages.
Alistair Barr is a reporter for MarketWatch in San Francisco.
News 
Market Data 
Discover 
