FDIC Takes Big Hit on BankUnited Failure

BankUnited was the 34th bank failure of 2009.

The failure is notable because the FDIC is taking a large hit - the second largest of the financial crisis. FDIC estimates they'll cover $4.9 billion, while IndyMac's failure cost $11 billion.

BankUnited was the largest bank in Florida, and they were involved with risky loans (no surprise there). The failure is notable because it happened on a Thursday instead of the typical FDIC-Friday, and the FDIC covered all uninsured deposits. According to the FDIC's Q&A:

No one lost any money on deposit in BankUnited, FSB.
It is business as usual; customers should continue to use their existing branches.

This is a nice time to remember that the financial crisis is not over, and that banks may still fail. Make sure you're under FDIC insurance limits and you're paying attention to the news about your bank.

Further reading:

• What Happens in a Bank Failure?
• How FDIC Insurance Works
• Banks Must Bolster FDIC Insurance Fund