Colonial Files For Bankruptcy

Colonial BancGroup, whose assets were acquired by BB&T Corp. in a deal brokered by the Federal Deposit Corp., has filed for Chapter 11, according to media reports.

The announcement comes a day after Colonial's longtime business partner, Ocala-based Taylor, Bean & Whitaker, filed for bankruptcy. Federal authorities are currently investigating Colonial over alleged accounting irregularities that were revealed during the bank's attempt to secure TARP funds.

Bloomberg reports that Colonial listed $45 million of assets and $380 million of debts in its Chapter 11 filing.

SOURCE: Bloomberg


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