BB&T takes over Colonial BancGroup

Source: Dallas Business Journal

Colonial BancGroup Inc., which is based in Montgomery, Ala., was seized by bank regulators Friday and has been taken over by BB&T Corp of North Carolina.

It is the sixth-largest bank to fail in the nation’s history and the largest of 74 U.S. banks to fail this year. Colonial has 23 Texas bank offices, 20 of which are in Dallas-Fort Worth.

At 5 p.m. Friday, the State of Alabama Banking Department officially appointed the Federal Deposit Insurance Corp. as receiver of the bank, which signed a loss-sharing agreement with BB&T.

The failure will cost the federal insurance fund $2.8 billion, according to the FDIC. Colonial’s $20 billion in deposits have been transferred to BB&T.

Read more: http://www.bizjournals.com/dallas/stories/2009/08/17/daily5.html

Paulson bought the banksters one more year of looting---at a terrific cost to the country.