Report: BB&T To Buy Colonial Branches, Deposits

WFTV ^ | August 14, 2009 | IEVA M. AUGSTUMS

[sheikdetailfeather]

CHARLOTTE, N.C. -- Shares of BB&T Corp. rallied Friday on reports it will buy deposits and branches of Colonial BancGroup Inc. in a deal backed by federal regulators to take the struggling lender into receivership.

The deal was approved by the Federal Deposit Insurance Corp. on Thursday night and is expected to be announced later on Friday, The Wall Street Journal reported.

"The market is treating it as it was a foregone conclusion here," said Sandler O'Neill & Partners analyst Kevin Fitzsimmons.

Shares of BB&T rose $2.26, or 8.8 percent, to $28.06 in afternoon trading Friday, while shares of Colonial BancGroup fell 6 cents, or 12.8 percent, to 41 cents.

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On Thursday, a federal court froze $1 billion of Colonial's assets in response to a suit filed by Bank of America Corp.

Charlotte, N.C.-based Bank of America sued Colonial as means to protect its claim on Colonial loans, because it feared Colonial's future was in question.

[sheikdetailfeather]

(August 13, 2009)

BofA Sues Colonial Bank For $1B In Cash, Loans

http://www.wftv.com/money/20385387/detail.html

[org.whodat]

On Thursday, a federal court froze $1 billion of Colonial's assets in response to a suit filed by Bank of America Corp.

What assets??? LOL

[A.Hun]

Colonial was just taken over by the FDIC

http://hosted.ap.org/dynamic/stories/U/US_COLONIAL_BANCGROUP_FAILURE?SITE=FLTAM&SECTION=BUSINESS

[E. Pluribus Unum]

This is a bad deal for BB&T.

It doesn't matter what promises the FDIC made to get them to take it, but the Feds will renege in a heartbeat and send in the SWAT teams to take them down, and maybe put a few of them in jail for good measure.

The purpose of current federal policy is to protect the guilty and punish the innocent.

[Coldwater Creek]

Great deal for BBT shareholders.