An Interview with John Kanas
President and CEO of BankUnited and BankUnited, N.A.
I
ndisputably one of the most renowned
area bankers, John Kanas, CEO of
Bank United, shared his perspectives
on the opportunities and challenges
facing Long Island’s economy. The
resuscitator of Bank United, an ailing
Florida savings and loan which he
transformed in a few short years to
become one of the most well-capitalized
financial institutions in the country,
shared tips and insights on how to
continuously adapt in a changing global
economy.
footprints are being deemphasized
in favor of convenient mobile and
online banking applications along with
consumer lending products. Technology
is the new language of banks.
How has the economy impacted
the industry?
There have been massive layoffs
and branch closings with the rise of
ecommerce. We are also experiencing
what I call the “brain drain” – the
mass exodus of young people from
the island to locations with better job
growth. There is a downturn in housing
and a crucial need for enhanced STEM
(science, technology, engineering and
mathematics) programs in schools. This
is vital to keeping future generations
of the nation’s workforce globally
competitive. As far as monetary policy:
We have never been at this rate level
for this long a period of time. We are
uncertain about what could happen if
the Fed were to crank up rates to curb
inflation - these waters are unchartered.
Economists are baffled. The dollar is
stronger than it’s ever been but worth
less. It’s a tremendous mystery for all
of us.
Tell us about how you started.
I joined North Fork bank in 1977 and at
age 29, I was appointed President and
CEO of the regional bank - the youngest
bank CEO in America at that time. 10
years later, I became Chairman and
succeeding in leading the company to
its initial public offering in 1982 to its
membership on the NYSE and inclusion
in the S&P 500 Index. In 2005, I got
the sense that the economy would
weaken and began talking to people
about buying North Fork Bank. This
culminated in the sale to Capital One in
2006 for $14.6 billion, just prior to the
recession.
Tell us how BankUnited started.
two other bidders. It became almost
BankUnited was one of the two large
an immediate success. After just 19
American banks that had been seized by months, the company went public and
federal regulators after the real estate
was valued at approximately $3.5
collapse in 2008. It had 80 branches
billion, with $17 billion in assets. The
in Florida and the government was
focus of the loans the bank makes
accepting bids from investors to take
are in commercial lending, loans for
it over and revive it. They had sent out
apartments and multi-family buildings,
63 bid packages looking for bidders. I
and for businesses.
met with Wilbur Ross, a billionare who
deals in buying and selling distressed
What is your philosophy at
companies out of his office in New York, BankUnited?
and I formed an investment group
for this project. We took in Carlyle,
I’ve always taught those who work for
Blackstone, Centerbridge, and we put
me the importance of customer service.
in a bid for $940 million and won over
When the phone rings, you pick it up. As
far as finding the right people: I’ve been
able to cherry-pick talented people I’ve
known in my life, bankers with whom I
have long-standing relationships.
What advice would you give to
future generations?
Those of you with children, channel
them to succeed in science and math.
Long Island is an economic engine
that drives the state - where would you
What changes have impacted the
rather be? This is one of the greater
industry?
markets in the whole country. We have
everything it takes to create growth
Bank branches are not a thing of the
here. Think about the role you play in
past, but they are less important than
local politics and policy creation. Get
they once were. More than 1,600 have
involved. Collaborate. We have a lot
closed their doors nationwide in the past
more strength working together to affect
year alone. As they are no longer a
positive change.
hub of activity, branches and real estate
For more information on John Kanas and BankUnited, call 1-877-779-2265 or visit www.bankunited.com