In a South Florida Business Journal exclusive surrounding the recent BankUnited lay offs, Gunster banking & financial services law attorney Gus Schmidt was tapped to weigh in on possible reasons for the sudden closing of branches.
Schmidt said that one possible reason could be consolidating branches in order to reduce expenses and focus on other priorities such as tech investments. He also speculated that BankUnited could be consolidating in order to appear more profitable for a potential merger or acquisition. “It could be they think they’ve turned around the bank enough to sell at a profit. I wouldn’t be surprised if that were a consideration,” Schmidt stated. “Laying off employees and reducing costs to seem more profitable could be a sign of trying to make their balance sheet more attractive for acquisition.”
Gus Schmidt is a shareholder in Gunster’s Fort Lauderdale office. He focuses his practice on securities and corporate governance, mergers and acquisitions, bank regulation, capital raising, capital markets and general corporate matters.
Read the full article: BankUnited CEO talks employee layoffs, future plans