BankUnited One of the Last 'Dead Banks Walking'

BankUnited Was One of the Last 'Dead Banks Walking'
Daily Business Review

When BankUnited Financial tied its fate to payment option adjustable rate mortgages, the company grew to become Florida's largest bank but crashed as the housing market tanked. The once-hyped option-ARMs proved deeply flawed, sinking banks that bet their futures on them and contributing to the global recession. "There is a direct cause-and-effect relationship," says one mortgage authority. "BankUnited was a leader locally in the origination of these loans in an area where values are down 50 or 60 percent." [more]