Colonial’s shut; what’s next?
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.