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Foreclosures, BankUnited: Financial Recap

Stocks in this article: BAC RF WFC

NEW YORK ( TheStreet) -- Foreclosure woes continued to haunt banks this week as Bank of America (BAC) disclosed that it had found some "errors" in its documentation process. Wells Fargo (WFC), which had professed that it would not halt foreclosures, also found similar documentation issues.

Foreclosure Crisis: Loss Reserves Back Up?


Earnings continued this week with financial firms including UBS (UBS), Visa (V), TD Ameritrade (AMTD), MetLife (MET), and Regions Financial (RF) showing mixed results for the quarter.

Shares of Regions were hit particularly hard this week, falling 11%. The Birmingham, Ala.-based bank said its third-quarter loss was improved from the prior year's third quarter, but the numbers were weaker than Wall Street was expecting, particularly after rival SunTrust Banks (STI) posted positive earnings for the quarter.

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BankUnited filed on Friday with the Securities and Exchange Commission for an initial public offering in which it plans to raise up to $300 million of common stock. The shares would trade on the New York Stock Exchange under the ticker "BKU."

The IPO is significant since it would it be the first bank IPO by private investors since the financial crisis. Former North Fork CEO John Kanas is now heading up the restructured bank, and acquisitions are sure to follow. North Fork was bought by Capital One (COF) in 2006.

"When you look back five years later after the crisis, the big deals that really stand out are going to be Wachovia going to Wells Fargo, not Citigroup (C), "but the sweetheart deal will be BankUnited," says Ken Thomas, a Miami based banking consultant and economist.

Of the $900 million invested by Wilbur Ross, Carlyle Group, Blackstone Group (BK) and Centerbridge Partners "already made about a third of that," Thomas says. "None of the other private equity deals even came close to that."

Thomas continued: "One thing we know about Kanas and his group -- they're very focused and they're very careful. They will not overpay on a deal."


Other happenings this week:

Former AIG (AIG) CEO Maurice 'Hank' Greenberg and former CFO Howard Smith liable for damages on a fraudulent reinsurance transaction.


Of course with Halloween on Sunday, TheStreet thought it would be amusing to come up with the 10 scariest things on Wall Street.

Happy Halloween!

--Written by Laurie Kulikowski in New York.



To contact the writer of this article, click here: Laurie Kulikowski.

To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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