Comments on: R.I.P Bank United http://www.footnoted.com/blog-reel/rip-bank-united/ Michelle Leder's guide to what's hiding in SEC filings Fri, 23 Jul 2010 18:06:29 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Derek Pilecki http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8584 Derek Pilecki Wed, 27 May 2009 14:43:42 +0000 http://www.footnoted.com/?p=3754#comment-8584 BKUNA was a strange bank. It seemed like they didn't know what model they wanted to follow. Should they follow Golden West and be a thrift or should they follow SunTrust and be a commercial bank? In the end, it didn't matter because they made enough Option ARM loans at the top of the housing market to doom the company. Many more bank failures to come in Florida and Georgia. FDIC is <a href="http://www.fdic.gov/news/news/press/2009/pr09068.html" rel="nofollow">opening a branch office</a> in Jacksonville to deal with them. BKUNA was a strange bank. It seemed like they didn’t know what model they wanted to follow. Should they follow Golden West and be a thrift or should they follow SunTrust and be a commercial bank? In the end, it didn’t matter because they made enough Option ARM loans at the top of the housing market to doom the company.

Many more bank failures to come in Florida and Georgia. FDIC is opening a branch office in Jacksonville to deal with them.

]]> By: Michael Malone http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8577 Michael Malone Tue, 26 May 2009 14:18:35 +0000 http://www.footnoted.com/?p=3754#comment-8577 Please tell us what will become of the common shareholders when it becomes official and not just speculation that we will be wiped out. thank you Please tell us what will become of the common shareholders when it becomes official and not just speculation that we will be wiped out.

thank you

]]> By: Francine McKenna http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8556 Francine McKenna Sat, 23 May 2009 16:05:30 +0000 http://www.footnoted.com/?p=3754#comment-8556 I blogged about Bank United in an article about lack of "going concern" opinions by auditors back in January. There are lots of conflicts there that potentially gave them too much time on life support. http://retheauditors.com/2009/01/going-going-gone-auditors-still-not-concerned-enough-about-client-viability/ “Real estate acquired through foreclosure has increased from $729,000 at September 30, 2006, to $27.7 million at September 30, 2007 and $73.4 million at March 31, 2008. The increase over this period is reflective of the increased levels of residential loan defaults noted throughout the nation, and especially in Florida. The Company expects loan defaults to continue and possibly increase for the remainder of fiscal 2008 and into fiscal 2009, resulting in further additions to REO.” The external auditor for Bank United Financial is PricewaterhouseCoopers LLP. Why is it that they didn’t question their client regarding their lack of a going concern disclosure prior to December 16, 2008? Thirty-nine year old Joris M. Jabouin, CPA was appointed Executive Vice President and General Auditor for the Bank in November 2004. He has served as Senior Vice President and General Auditor of the Bank since June 2003. He previously served as Vice President and Head of Audit for Dresdner Bank Lateinamerika, AG, Miami Agency from 2000 to 2003. Mr. Jabouin was a Senior Auditor with PricewaterhouseCoopers LLP from 1998 to 2000 and was an Auditor with Price Waterhouse LLP from 1996 to 1998. He was also an Associate Examiner with the Federal Reserve Bank of Atlanta from 1993 to 1996. “Forty-eight years old Humberto L. Lopez, CPA has served as our Senior Executive Vice President from 2001, and Executive Vice President of Finance from 1999 to 2001. He has also served as our Chief Financial Officer and the Bank’s Chief Financial Officer since 1999. He was previously a Director from 1998 to 1999 at PricewaterhouseCoopers LLP. Mr. Lopez also served as the Chief Financial Officer from 1997 to 1998, and the Regional Financial Officer from 1993 to 1996, of Barnett Bank, South Florida and its successor by merger, NationsBank, Inc. in South Florida. ” Mr Lopez has no published biography prior to 1993." I blogged about Bank United in an article about lack of “going concern” opinions by auditors back in January. There are lots of conflicts there that potentially gave them too much time on life support. http://retheauditors.com/2009/01/going-going-gone-auditors-still-not-concerned-enough-about-client-viability/

“Real estate acquired through foreclosure has increased from $729,000 at September 30, 2006, to $27.7 million at September 30, 2007 and $73.4 million at March 31, 2008. The increase over this period is reflective of the increased levels of residential loan defaults noted throughout the nation, and especially in Florida. The Company expects loan defaults to continue and possibly increase for the remainder of fiscal 2008 and into fiscal 2009, resulting in further additions to REO.”

The external auditor for Bank United Financial is PricewaterhouseCoopers LLP. Why is it that they didn’t question their client regarding their lack of a going concern disclosure prior to December 16, 2008?

Thirty-nine year old Joris M. Jabouin, CPA was appointed Executive Vice President and General Auditor for the Bank in November 2004. He has served as Senior Vice President and General Auditor of the Bank since June 2003. He previously served as Vice President and Head of Audit for Dresdner Bank Lateinamerika, AG, Miami Agency from 2000 to 2003. Mr. Jabouin was a Senior Auditor with PricewaterhouseCoopers LLP from 1998 to 2000 and was an Auditor with Price Waterhouse LLP from 1996 to 1998. He was also an Associate Examiner with the Federal Reserve Bank of Atlanta from 1993 to 1996.

“Forty-eight years old Humberto L. Lopez, CPA has served as our Senior Executive Vice President from 2001, and Executive Vice President of Finance from 1999 to 2001. He has also served as our Chief Financial Officer and the Bank’s Chief Financial Officer since 1999. He was previously a Director from 1998 to 1999 at PricewaterhouseCoopers LLP. Mr. Lopez also served as the Chief Financial Officer from 1997 to 1998, and the Regional Financial Officer from 1993 to 1996, of Barnett Bank, South Florida and its successor by merger, NationsBank, Inc. in South Florida. ” Mr Lopez has no published biography prior to 1993.”

]]> By: Mike M http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8544 Mike M Fri, 22 May 2009 21:51:50 +0000 http://www.footnoted.com/?p=3754#comment-8544 "...the bank was still using credit scores ... to check income..." Income is not even an input for credit scores. And it doesn't matter if you've always paid your bills, if you don't have enough income, there's no way you'll make the payments. It's really is just that ridiculously simple. “…the bank was still using credit scores … to check income…” Income is not even an input for credit scores. And it doesn’t matter if you’ve always paid your bills, if you don’t have enough income, there’s no way you’ll make the payments. It’s really is just that ridiculously simple.

]]> By: Frank Graham http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8543 Frank Graham Fri, 22 May 2009 17:39:49 +0000 http://www.footnoted.com/?p=3754#comment-8543 Banks hit with one time $5.6 billion fee 1:31p ET May 22, 2009 (MarketWatch) WASHINGTON (MarketWatch) -- To prepare for further bank collapses, a key regulator on Friday introduced a one-time fee on banks that should bring in $5.6 billion in funds to help refill a depleted insurance fund used to protect depositors. The Federal Deposit Insurance Corp. signed off on a new fee to replenish its deposit insurance fund, which pays depositors of failed institutions. The FDIC imposed a 5 basis point charge on each bank's assets minus its grade A, Tier 1 capital that regulators require. That means banks must pay 5 cents into the fund for each $100 of assets they have minus their Tier 1 capital. The amount is significantly less than the $15 billion the FDIC expected to bring in from the one-time fee when the agency considered it in February. At that time the FDIC tentatively asked to have banks pay a 20 basis point charge on U.S. deposits, which meant banks would have had to pay 20 cents for every $100 of U.S. deposits. Banks hit with one time $5.6 billion fee
1:31p ET May 22, 2009 (MarketWatch)
WASHINGTON (MarketWatch) — To prepare for further bank collapses, a key regulator on Friday introduced a one-time fee on banks that should bring in $5.6 billion in funds to help refill a depleted insurance fund used to protect depositors. The Federal Deposit Insurance Corp. signed off on a new fee to replenish its deposit insurance fund, which pays depositors of failed institutions. The FDIC imposed a 5 basis point charge on each bank’s assets minus its grade A, Tier 1 capital that regulators require. That means banks must pay 5 cents into the fund for each $100 of assets they have minus their Tier 1 capital. The amount is significantly less than the $15 billion the FDIC expected to bring in from the one-time fee when the agency considered it in February. At that time the FDIC tentatively asked to have banks pay a 20 basis point charge on U.S. deposits, which meant banks would have had to pay 20 cents for every $100 of U.S. deposits.

]]> By: Doug Cornelius http://www.footnoted.com/blog-reel/rip-bank-united/comment-page-1/#comment-8540 Doug Cornelius Fri, 22 May 2009 15:30:25 +0000 http://www.footnoted.com/?p=3754#comment-8540 Michelle - Nice catch on the huge percentage of stated income and asset verification loans and no doc loans. That is a sure sign of poor underwriting and a harbinger of death for a bank. There is some need for these types of loans. But in large part, they are liar loans. the bank is really underwriting the value of the property and not the borrowers ability to repay the loan. That is not a good position to be in when home prices plummet. Michelle –

Nice catch on the huge percentage of stated income and asset verification loans and no doc loans. That is a sure sign of poor underwriting and a harbinger of death for a bank.

There is some need for these types of loans. But in large part, they are liar loans. the bank is really underwriting the value of the property and not the borrowers ability to repay the loan. That is not a good position to be in when home prices plummet.

]]>