Federal agents raided the Florida-based warehouse lending operation of a struggling financial institution.
In a statement today, The Colonial BancGroup Inc. said the raid occurred at its mortgage warehouse lending division located in Orlando, Fla. The firm said it is cooperating with authorities.
“Colonial Bank continues to conduct business as usual,” the bank-holding company said.
The statement indicated that contrary to press reports indicating that two branches were raided, only one branch was the subject of the search warrant.
Colonial is already operating under two cease-and-desist orders and has warned of its imminent demise. Taylor, Bean & Whitaker Mortgage Corp., which revealed in March that it was leading a $300 million investment in the bank, abandoned the deal last week.
In today’s statement, Montgomery, Ala.-based Colonial said the agents were associated with the Special Inspector General for the Troubled Asset Relief Program.