Feds shut down Colonial Bank

[dixiegrrrrl]

This is a big bank, lots of business in Fla.

http://bloomberg.com/apps/news?pid=20601087&sid=aXsSaA6DJw_4

edited to add: another bank closed too.
Dwelling House Savings and Loan Association, Pittsburgh, PA

[ronnykmarshall]

1. The bank I work for was rumored to buy their TX branches.

[Tangerine LaBamba]

2. Whoa!

Colonial's big, all right.

That's very bad..............

[marketcrazy1]

4. this could break the FDIC

they may need to tap the treasury credit line pretty quick to cover their exposure here......

[CoffeeCat]

8. When Washington Mutual failed last fall...

...in several articles about this failure, it was mentioned that WaMu going belly up
stretched and stressed the FDIC's resources. Granted, WaMu was one of the country's
largest banks--but there have been so many bank failures since then, including
Colonial--which is pretty big.

I wonder what the hell is going on. If it's important and critical to our lives--I'm sure
we'll be kept in the dark for as long as possible.

[TwixVoy]

9. Read my post in GD if you want to see WHY the banks are still going down

Here is my post. It has a video with Elizabeth Warren about why we are still screwed BADLY and the banks have only a matter of time left.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6297665&mesg_id=6297665

[DemReadingDU]

3. It's official, from FDIC

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.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.

more...
http://www.fdic.gov/bank/individual/failed/colonial-al.html


edit
8/14/09 As of the end of June, Colonial had assets of $25.5 billion and liabilities of at least $24.2 billion, which includes deposits of $20 billion. Colonial BancGroup says it has 355 branches in five states: Alabama, Florida, Georgia, Nevada and Texas.

Colonial was among two banks raided earlier this month by federal agents in Florida acting on search warrants issued by the office of Neil Barofsky, the special inspector general for the Troubled Asset Relief Program.

So far this year, 72 banks have failed, according to the Federal Deposit Insurance Corporation. The FDIC insurance fund declined by $35.1 billion in 2008 and another $4.3 billion during the first quarter of 2009, leaving it with just $13 billion on hand. It has yet to report second quarter results.

more...
http://money.cnn.com/2009/08/14/news/companies/colonial/?postversion=2009081407

[Pab Sungenis]

5. Phew.

There's a Colonial Bank here in NJ that handles a lot of local businesses. Bought up a long standing local bank a few years ago and then went on a branch-building orgy.

We're lucky that the closures so far have been either locals or regionals. When the first truly national goes under we're all doomed.

[jakeXT]

6. 2.8 billion only, what does this buy 1 or 2 days of Iraq & AfPak war ?

http://www.zerohedge.com/article/one-bank-one-sl-down-so-far-fdic-down-only-197-million

[GliderGuider]

7. I now count 77 entries in the Failed Banks list for 2009.

http://www.fdic.gov/bank/individual/failed/banklist.html