Florida’s largest bank was already under pressure from analysts, investors, and third-party governance groups concerned about the institution’s growing number of problem mortgages even before Thursday’s New York Times article donned the Miami-based lender as the “Tempest for a Bank That Bet on Risky Loans.”
BankUnited, Florida’s largest based bank with assets of $14.3 billion and the originator of the “59 Minute Loan” during the real estate boom years, is now “scrambling to raise $400 million in capital, an amount nearly eight times the bank’s shriveled value on the stock market,” according to the article.
BankUnited has a market capitalization value of $47 million, according to Yahoo! Finance.
The stock price of BankUnited (Nasdaq: BKUNA) dropped by 12 percent to $1.32 per share in midday trading Thursday. The current pricing means BankUnited’s shares have plummeted about 93 percent from the institution’s 52-week high price of $19.69 per share, according to Yahoo! Finance.
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.
Copyright © 2008, Condo Vultures® LLC
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment