DealZone

Colonial’s shut; what’s next?

August 17, 2009

Alabama’s Colonial Bank collapsed Friday under the weight of the financial crisis and allegations of fraud – making it the biggest bank to fail this year. 

US regulators shuttered the bank and sold its assets to BB&T, which got Colonial’s $20 billion deposits and an FDIC guarantee on $15 billion of assets. 

One analyst questioned how much of those deposits will stick with BB&T after the takeover, though. Colonial was paying about 100 basis points more for funds than BB&T, said Richard Bove of Rochdale Securities, in a research note.

But in these times, the question probably is which bank is next. 

The Financial Times reported regulators are seeking bids for Guaranty Financial by Monday.

Comments
One comment so far | RSS Comments RSS

The FDIC is broke so what next is a good question.

http://www.chrismartenson.com/blog/fdic- broke-now-what/25274

Posted by Lori | Report as abusive
 

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