BankUnited's resurrection illustrates everything that went wrong in the housing bubble.

Commentary about business and finance.
Jan. 26 2011 7:22 PM

The Sure Thing

BankUnited's resurrection illustrates everything that went wrong in the housing bubble.

(Continued from Page 2)

1.) The Office of Thrift Supervision was the primary regulator of BankUnited, not the FDIC. But because the FDIC acts as deposit insurer for all banks and oversees the deposit insurance fund, the FDIC had no choice but to step in as the bank's receiver. BankUnited had approximately $9.34 billion in insured deposits. These are liabilities that the FDIC is legally obligated to pay no matter what. The winning bid from the private equity consortium cost the fund less than any alternative would have; the only alternate bid by a banking institution would have cost the FDIC an additional $1 billion.

2.) Because BankUnited gets its money immediately upon a loan modification, that gives the bank more incentive to modify loans, not less, than other lenders without such an arrangement might have.

3.) The FDIC deposit insurance fund is now in reasonably good shape, and any fears about its solvency should be put to rest. Throughout the crisis, the FDIC maintained funding through assessments on the banking industry.

Like Slate on Facebook. Follow us on Twitter.



Blacks Don’t Have a Corporal Punishment Problem

Americans do. But when blacks exhibit the same behaviors as others, it becomes part of a greater black pathology. 

I Bought the Huge iPhone. I’m Already Thinking of Returning It.

Scotland Is Just the Beginning. Expect More Political Earthquakes in Europe.

Students Aren’t Going to College Football Games as Much Anymore

And schools are getting worried.

Two Damn Good, Very Different Movies About Soldiers Returning From War

The XX Factor

Lifetime Didn’t Think the Steubenville Rape Case Was Dramatic Enough

So they added a little self-immolation.

Medical Examiner

The Most Terrifying Thing About Ebola 

The disease threatens humanity by preying on humanity.

Why a Sketch of Chelsea Manning Is Stirring Up Controversy

How Worried Should Poland, the Baltic States, and Georgia Be About a Russian Invasion?

  News & Politics
Sept. 20 2014 11:13 AM -30-
Business Insider
Sept. 20 2014 6:30 AM The Man Making Bill Gates Richer
Sept. 20 2014 7:27 AM How Do Plants Grow Aboard the International Space Station?
  Double X
The XX Factor
Sept. 19 2014 4:58 PM Steubenville Gets the Lifetime Treatment (And a Cheerleader Erupts Into Flames)
  Slate Plus
Slate Picks
Sept. 19 2014 12:00 PM What Happened at Slate This Week? The Slatest editor tells us to read well-informed skepticism, media criticism, and more.
Brow Beat
Sept. 20 2014 3:21 PM “The More You Know (About Black People)” Uses Very Funny PSAs to Condemn Black Stereotypes
Future Tense
Sept. 19 2014 6:31 PM The One Big Problem With the Enormous New iPhone
  Health & Science
Bad Astronomy
Sept. 20 2014 7:00 AM The Shaggy Sun
Sports Nut
Sept. 18 2014 11:42 AM Grandmaster Clash One of the most amazing feats in chess history just happened, and no one noticed.