Foreclosures, BankUnited: Financial Recap

Foreclosure woes, earnings and BankUnited's impending IPO contributed to the headlines in the financial sector this week.
Author:
Publish date:

NEW YORK (

TheStreet

) -- Foreclosure woes continued to haunt banks this week as

Bank of America

(BAC) - Get Report

disclosed that it had found some "errors" in its documentation process.

Wells Fargo

(WFC) - Get Report

, 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) - Get Report

,

Visa

(V) - Get Report

,

TD Ameritrade

(AMTD) - Get Report

,

MetLife

(MET) - Get Report

, and

Regions Financial

(RF) - Get Report

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) - Get Report

posted positive earnings for the quarter.

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) - Get Report

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) - Get Report

, "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) - Get Report

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) - Get Report

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.