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Colonial goes under in biggest US bank failure of the year
COLONIAL became the largest US bank to fail this year after it was declared bankrupt today.Regulators shut down Colonial, which held about $US25 billion ($29.62 billion) in assets. The Federal Deposit Insurance Corporation (FDIC) has been made receiver and approved the sale of Colonial's assets and $26.06 billion in deposits. Rival BB&T has taken over the bulk of Colonial's assets, the government banking agency said. Colonial was a big lender in real estate development. All of the Alabama-based Colonial's 346 branches will reopen tomorrow "and operate as branches of BB&T," the FDIC said in a statement. "Deposits will continue to be insured by the FDIC," the agency said. Posted by: tipper 2009-08-14 |
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