The Real Deal Miami

Bank United scrounges for investment

August 07, 2008 01:07PM

Coral Gables-based Bank United tripled its profits in 2006 by offering high-risk mortgages, only to lose nearly $100 million in the last year since the decline of the housing market. Bank United now seeks to raise $400 million in capital in order to recover. The bank’s stock has plunged 93 percent since September, closing at $1.50 per share on Wednesday, down from $15.49 per share one year ago. Bank United’s chief executive, Alfred Camner, claims that the bank offered adjustable-rate mortgages for over 10 years before other factors flawed its otherwise successful lending strategies.