Maybe the Obama administration is just more patient than the rest of us. Last week the largest bank in Florida, United Bank of Coral Gables received a notice from the Office of Thrift Supervision. They have twenty days to either find a buyer or disappear. Will Coral Gables sink beneath the sea or will someone step up to purchase the bank? It will take a pretty big python to swallow this piglet and it will give us a reality check on money on the sidelines. If I would be thinking twice if I were holding trouble bank shares.
This bank is on par with IndyMac as far as size so could have intriguing repercussions. It also begs the question of how far on the hook would the FDIC be in a failure to sell or recapitalize? FDIC is not a bottomless pit....is it? Or will Goldman Sachs or Morgan Stanley, now banks, step in to acquire a deposit base?
John Barnyak
President
www.stonehouseasset.com
"You probably already know us here at BankUnited because we’re the largest bank headquartered in Florida. With more than $14.3 billion in assets, we’re a strong local presence, but we never forget our roots: Your community.
We’re proud to be your local bank and we’re proud to be your neighbors."
