BankUnited, Florida’s biggest regional bank, was seized by regulators and sold to a consortium of private equity firms on Thursday, in the largest bank failure this year.

Under the deal, which was brokered by the Federal Deposit Insurance Corporation, the buyers will inject $900 million of new capital into BankUnited and assume $12.7 billion in assets and $8.3 billion in deposits.
The F.D.I.C. has also agreed to share in any losses on $10.7 billion of the bank’s assets, which mainly consist of subprime residential mortgages made at the height of the housing boom. BankUnited, which is based in Coral Gables, Fla., will continue to operate its 86 offices and customers will be able to use their A.T.M. cards and checking accounts as normal, the F.D.I.C. said in a statement.
In April, the Office of Thrift Supervision ordered BankUnited to merge or find a buyer to replenish its depleted capital. Shareholders will now be wiped out. The buying group was led by John Kanas, the former head of North Fork Bank, which was sold to Capital One Financial in 2006. Mr. Kanas will become the new chief executive of BankUnited.
The new capital for BankUnited comes from several investment firms, including W L Ross & Company, the investment firm led by the investor Wilbur L. Ross; Carlyle Group; Blackstone Group; Centerbridge Partners; the LeFrak Organization, the New York real estate company; Wellcome Trust; Greenaap Investments; and the East Rock Endowment Fund.
The group won the auction over a competing bid from TD Bank and Goldman Sachs, according to people familiar with the matter.
Private equity firms have been clamoring to buy failed banks recently but have run up against regulatory restrictions and public criticism.
(Source: The NYT)