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Old 08-15-2009, 03:49 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,530,352 times
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Troubled Colonial BancGroup fails, sold to BB&T - Aug. 14, 2009

...is the sixth largest bank failure in U.S. history and by far the largest failure of 2009. With $25 billion in assets and $20 billion in deposits, Colonial is 100 times larger than the typical bank to have failed this year.
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Old 08-15-2009, 11:34 AM
 
Location: Great State of Texas
86,068 posts, read 76,871,028 times
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Add this to Colonial and the FDIC bonepile:

Colonial owes BofA $1 billion in cash and loans and, "by sheer luck" BofA got a restraining order against Colonial from selling or disposing of any of that ONE DAY before the FDIC shut them down.


Coincidence ?

Bank of America Wins Order on Colonial Bank Assets (Update1) - Bloomberg.com
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Old 08-15-2009, 01:17 PM
 
Location: Warwick, RI
3,687 posts, read 4,555,147 times
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Colonial Bancorps deposits and loan assets, othan what was frozen in the BOA lawsuit, will be sold to BB&T Bank, a strong regional bank from NC. The FDIC will eventually sell off Colonials other assets, probably at minimal loss or maybe even at a profit. The only real losers here will be Colonials employees and shareholders.
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Old 08-15-2009, 02:43 PM
 
Location: Colorado Springs, CO
2,221 posts, read 4,884,825 times
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Quote:
Originally Posted by treasurekidd View Post
Colonial Bancorps deposits and loan assets, othan what was frozen in the BOA lawsuit, will be sold to BB&T Bank, a strong regional bank from NC. The FDIC will eventually sell off Colonials other assets, probably at minimal loss or maybe even at a profit. The only real losers here will be Colonials employees and shareholders.
Not even close to the truth. From the FDIC's press release:
"The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion."
That's "billion" with a "b." 2,800 times a million dollars for the math-challenged. That's a lot of loss being spread around.

Note also that at the time of the WaMu seizure, the FDIC grossly underestimated the size of the hit to the DIF. If independent industry analyses of real losses closer to $6 Bn materialize, the DIF will be toast, and the treasury will have to directly support the FDIC if it is to deal with the other large failures to come...like Corus bank, which is circling the drain as we speak.
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Old 08-15-2009, 04:07 PM
 
3,460 posts, read 5,200,916 times
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I'm waiting to see how these bank failures will play out, and it isn't looking good. Over the last 16 months, we've had 100 bank failures, and 32 of those have been in the last six weeks.
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Old 08-16-2009, 09:08 AM
 
947 posts, read 2,928,803 times
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I was reading some info on another blog about this. Colonial was a major warehouse lender and the few mortgage bankers left counted on them to fund mortgage loans.

I'm guessing that next week is going to be pretty crazy, not that it's not crazy already in the mortgage industry.

I think the mortgage broker, mortgage banking industry is going to be dead. The only way to get home loans is the old fashioned way. Walking into a local bank or credit union, with money down.
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Old 08-16-2009, 11:12 AM
 
12,869 posts, read 13,710,117 times
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interesting article on how the FDIC is now bankrupt:
Mish's Global Economic Trend Analysis: As of Friday August 14, 2009, FDIC is Bankrupt
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Old 08-16-2009, 03:03 PM
 
Location: Great State of Texas
86,068 posts, read 76,871,028 times
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There's another bank in trouble and surprisingly was not shut down but they are big so maybe the FDIC has to do some extra work before locking their doors.

Texas Guaranty Bank is the one
Collapse of Guaranty Bank would be biggest failure of '09 - Jul. 31, 2009
The end draws nigh for Guaranty Bank
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Old 08-16-2009, 03:07 PM
 
12,869 posts, read 13,710,117 times
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this is the same bank that bulldozed new houses they obtained in foreclosure because it was "cheaper to bulldoze".

http://features.csmonitor.com/enviro...oze-the-burbs/
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Old 08-18-2009, 08:27 AM
 
12,869 posts, read 13,710,117 times
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the new hits on the FDIC adds up to $3.67 billion dollars in new costs, but this turns out to be $3 billion more than currently exists in the fund.
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