twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Colonial Dead

BB&T acquires all deposits, most of assets

Aug. 14, 2009

By Mortgage Daily staff

The Alabama State Banking Department has finally put Colonial Bank out of its misery. The huge failure -- the largest this year -- prompted words of reassurance from the chairman of the country's bank deposit insurance fund.

Alabama seized control of the Montgomery, Ala.-based institution at 5 p.m., shut it down and appointed the Federal Deposit Insurance Corporation receiver. Impaired capital was among the reasons cited for the failure.

Colonial and parent Colonial BancGroup Inc. have been on a downward spiral since a $300 million investment by a group of investors led by Taylor, Bean and Whitaker Mortgage Corp. collapsed last month and it warned about its ability to continue as a going concern.

Since then, agents from the Special Inspector General for the Troubled Asset Relief Program raided the bank's warehouse lending division, the U.S. Department of Justice launched a criminal investigation into accounting irregularities at the unit and Bank of America obtained a $1 billion temporary restraining order against the company.

Today's announcement indicated Branch Banking and Trust assumed all of Colonial's $20 billion in deposits. In addition, BB&T will acquire $22 billion of Colonial's $25 billion in assets as of June 30. Colonial held $5.3 billion in residential mortgages, $4.9 billion in commercial mortgages and $4.6 billion in construction-and-land-development loans as of March 31 -- though the company has acknowledged accounting irregularities.

With a $15 billion loss-sharing agreement in place, the FDIC expects the failure to deplete its Deposit Insurance Fund by $2.8 billion.

Colonial was the second federally insured bank to fail today and the 74th failure this year. It was founded in 1917 and employed more than 4,800 people as of March 31.

In an unusual move, FDIC Chairman Sheila C. Bair commented on the failure in the FDIC's news release. She reassured the public that the agency's "guarantee is as certain as ever."

"The past 18 months have been a very trying period in the financial services arena," Bair stated. "Losses from today's failures are lower than had been projected."

Colonial Bank news

next story

back to current headlines

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders