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Motley Fool Hidden Gems Investing

Motley Fool Money: 05.22.2009

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 22 May 2009

⏱️ 17 minutes

🧾️ Download transcript

Summary

Uncle Sam seizes and sells Florida’s BankUnited. The dollar continues its decline. And the SEC takes a closer look at just how, exactly, Bernie made off with billions. In this week’s Motley Fool Money we tackle those questions, discuss whether U.S. stocks really are cheap, air some beefs, and offer up three stock ideas.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Well done, Motley Full Money. I'm Chris Hill and I'm joined by Motley Full Senior

0:07.6

analyst James Early, Tim Hanson and Shannon Zimmering. Guys, happy Friday. Happy Friday you, Chris.

0:13.4

Wow, that was almost in yours today. That was nice. We practiced it there.

0:17.6

Alright, we got a lot to get to this week, including a big bank seizure, the falling dollar,

0:21.6

and the latest twist in the Bernie Madoff saga. So, we'll talk about all that, share three stock

0:26.8

ideas and air a few beefs.

0:30.1

Shannon, let's kick things off with you. This week, the FDIC seized Florida's bank

0:34.8

united and sold it to a group of investors who agreed to inject 900 million into the new bank.

0:40.7

Bank United has around $13 billion worth of assets. So, we're not talking about

0:44.9

chump change here, but I got to ask, why should investors care about this?

0:49.6

Well, so they have about 13 billion in assets and then another almost 9 billion in deposits.

0:54.4

And I think they should care about it because it could be or at least maybe it should be the

0:57.2

shape of things to come. We finally had a real stress test as opposed to the mock exams that

1:01.6

were out a couple of weeks ago. So, basically, what you have is that the largest regional bank

1:06.0

in Florida failing. And there are some good news. I guess you could look at this and compare it

1:10.2

to IndieMac, the largest bank failure that the FDIC had participated in and say, well, you know,

1:15.5

took them five months to find a buyer for IndieMac. They had a buyer almost immediately. Well,

1:19.7

really, immediately, for Bank United. So, that could be good news because private investors

1:24.6

are willing to step up to the plate and say, hey, you know, I'm willing to put something at risk

1:29.4

for this troubled bank and anticipation and profit, but the price had to be right. And the FDIC

1:34.1

was definitely in Monning Hall or Howie Mandel mode. And they were wheeling and dealing.

1:39.2

And basically, if you take a look at the book value of Bank United and compare it to what the

...

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