BankUnited needs a rescue

"After an analyst downgrade sent their stock diving 30% to $2.35 today, BankUnited Financial of Florida tonight issued a press release announcing a secondary stock offering. The bank is looking to raise $400 million of capital, which at the current stock price would translate into an additional 170m shares. As of March 31st, the company had only 35 million shares outstanding. I’m no expert on secondary stock offerings, but seems to me that issuing another 170 million will effectively wipe out existing shareholders."