This Day On The Street
Continue to site
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

BankUnited Warning Prompts Downgrade 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.27 -0.76%
FB $101.00 1.47%
GOOG $684.12 0.89%
TSLA $143.67 -3.09%
YHOO $27.10 1.04%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs