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BankUnited Capital Caution; Independence in peril if funding effort fails.

Publication: American Banker
Publication Date: 18-DEC-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Byline: Katie Kuehner-Hebert

BankUnited Financial Corp. in Coral Gables, Fla., told investors it may not be around to ring in the new year if it fails to meet a regulatory requirement to secure additional capital.

The $14.2 billion-asset company has suffered several consecutive quarterly losses as it struggles to overcome exposure to souring option adjustable-rate mortgages.

In September, the Office of Thrift Supervision ordered BankUnited to boost its capital by Dec. 31, but late Tuesday the company said it is struggling to meet the OTS requirement to raise Tier 1 and total risk-based capital ratios to 7% and 14%, respectively. It forecast that it would report a loss of $327 million for its fiscal fourth quarter, which ended Sept. 30, but said it...

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