Florida's BankUnited Is 34th Bank Failure This Year
STEVE INSKEEP, host:
NPR's business news starts with a big bank failure.
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INSKEEP: This must not be a good thing to see if you work for a bank. Dozens of federal regulators swarm into your headquarters and seize the place. That's what happened at Bank United of Coral Gables, Florida yesterday. Bank United toppled under the weight of risky mortgages that went bad. And its closure will drain nearly $5 billion from the Federal Deposit Insurance Corporation. That's the institution that supports the deposits, ensures the deposits in that bank.
The bank will be open for business this morning, we're told, under a new management. After closing the bank, the FDIC sold it to a group of private equity investors.