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| Economy |
| Colonial goes under in biggest US bank failure of the year |
| 2009-08-14 |
| 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 |