Largest Bank Failure this Year: FDIC Closes Colonial BancGroup

by Sabrina I. Pacifici on August 14, 2009

Failed Bank Information Information for Colonial Bank, Montgomery AL. “On Friday, August 14, 2009, Colonial Bank, Montgomery, AL was closed by the Alabama State Banking Department, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.”

  • BB&T acquisition of Colonial boosts position in Atlanta: “Colonial operated 20 branches in Georgia…The FDIC entered into a purchase and assumption agreement Friday with BB&T to acquire the deposits, branches and most assets of Montgomery, Ala.-based Colonial.”
    CNNMoney.com: “Troubled Colonial BancGroup will be bought by rival BB&T Friday, the government said after state regulators closed the bank whose assets had been frozen by a federal judge. The Montgomery, Ala., bank, which has 346 branches spread across Florida, Alabama, Georgia, Nevada, and Texas, is the sixth largest bank failure in U.S. history and by far the largest failure of 2009.

  • FDIC Failed Bank List: “This list includes banks which have failed since October 1, 2000.”
  • Related postings on financial system

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