Colonial facing criminal probe, possible FDIC takeover

Tampa bay Business Journal ^ | August 7, 2009 | Margie Manning

[sheikdetailfeather]

The Alabama State Banking Board is expected next week to ask Colonial BancGroup to agree to appoint the Federal Deposit Insurance Corp. as receiver or conservator for Colonial Bank.

Colonial said in a release and in a Securities and Exchange Commission filing Friday morning that it received notice Wednesday from the Alabama board that it would ask for Colonial’s consent in the matter, if and when the state superintendent of banking deems such an appointment to be necessary, at a meeting on Aug. 12.

[sheikdetailfeather]

Colonial (NYSE: CNB), based in Montgomery and with a major presence in the Tampa Bay area, also acknowledged that it is under investigation by the Special Inspector General for the Troubled Asset Relief Program. Colonial said it provided documents to SIGTARP in response to a subpoena earlier this year. On Thursday, Colonial said it was informed by the U.S. Department of Justice that it is the target of a criminal investigation related to its mortgage warehouse lending division and related accounting irregularities.

[bamahead]

ping

[rabscuttle385]

*Ping!*

[investigateworld]

Last Friday, I was in the hospital, so I couldn't recite my FDIC prayer, but I'm catching up:

"Dear Lord,

We know that into each life, some cr*p must fall; please be it your will that the stockholders who will be affected by the FDIC Friday announcements,be of the Free Trade - Open Borders - Amnesty supporter types. Yea, Lord if it please thee, let the financial Hershey Squirts douse them and show the Earth thou hasn't forgotten us."

"Amen"

[GOPJ]

Did State Bank of Sarasota go under too?

[lainie]

Why are other banks surprised on Fridays by bank takeover experts, while this one is asked to consider giving up, pretty please, with sugar on top?

[GOPJ]

We know that into each life, some cr*p must fall; please be it your will that the stockholders who will be affected by the FDIC Friday announcements,be of the Free Trade - Open Borders - Amnesty supporter types.

LOL

[sheikdetailfeather]

Looks like a yes!

Information for First State Bank, Sarasota, FL

I. Introduction
On Friday, August 7, 2009, First State Bank, Sarasota, FL was closed by the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

http://www.fdic.gov/bank/individual/failed/fsb-sarasota.html

[PAR35]

No advance notice is given to the public when a financial institution is closed.

Looks like the folks in Alabama forgot to read that line.

[Travis McGee]

I hope your hospital stay did the trick, and “all systems are go!”

[GOPJ]

Thanks for the information...