This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BankUnited Warning Prompts Downgrade

Stocks in this article: BKUNA Ratings lowered its financial strength rating on BankUnited Financial (BKUNA) to E- (very weak), in response to the company's warning in a regulatory filing that it could be shut down by regulators.

BankUnited said in a Securities and Exchange Commission filing Tuesday that the company had not been able to comply with a regulatory order to raise capital, and faced "enforcement action," which could include placing the bank into receivership."

The company also said it didn't expect to file its annual 10-K report for its fiscal year ended Sept. 30, 2008 until the end of February.

In the filing, the Coral Gables, Florida, holding company also increased its estimate of its net loss for the quarter ended Sept. 30 to $607 million, from a previous estimate of $327 million. The company said that when it made the previous estimate, its allowance for loan and lease losses "analysis was not yet completed." Ratings had downgraded BankUnited to D- (weak), based on the original Sept. 30 Thrift Financial Report. The E- rating will be published soon on the Banks and Thrifts Screener.

BankUnited had approximately $14.5 billion in total assets as of Sept. 30. It said that, based on the revised "preliminary loss" for the quarter, main subsidiary BankUnited FSB's tier-1 and risk-based capital ratios were 3.4% and 7.1% as of Sept. 30. The company didn't provide a revised leverage ratio.

In order to be considered well-capitalized under regulatory guidelines, a bank or thrift needs to maintain leverage, tier-1 and risk-based capital ratios of at least 5%, 6% and 10%. BankUnited's revised figures for Sept. 30 would leave it undercapitalized according to the guidelines.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs