FBI Raids Colonial Bank & Taylor Bean Whitaker in Florida

I DO NOT know if there is a relationship between the 2 raids, but they both occurred today.

ORANGE COUNTY, Fla. (WOFL FOX 35) - - FBI agents from the Washington, D.C. field office have raided a building in downtown Orlando.

The building raided is the Colonial Bank building on Pine Street. The FBI is working with the Office of the Special Inspector General for the Troubled Asset Relief Program which was established by the Emergency Economic Stabilization Act of 2008.

Local FOX, check back for updates

From Reuters Wire

MIAMI, July 3 (Reuters) - Federal agents working with the U.S. Treasury's Troubled Asset Relief Program executed search warrants at two Colonial Bank offices in Florida on Monday, local media reported.
A spokeswoman for the Alabama-based bank told Reuters that a warrant had been served at the bank's Orlando location, but could not confirm an Orlando Sentinel report that another had been executed at one of the bank's offices in the central Florida town of Ocala.
(Reporting by Jane Sutton, editing by Leslie Gevirtz) (([email protected]; +1 305 810-2688)) Keywords: COLONIALBANK/

From AI.com

Colonial BancGroup received a search warrant from a U.S. government agency, according to a spokeswoman for the troubled Montgomery-based bank.
Colonial says it has received a government search warrant.
"We are cooperating with the federal government," spokeswoman Merrie Tolbert told Bloomberg News today in an interview.

Specifics were not available in Bloomberg's initial report.

Colonial on Friday reported a $606 million second-quarter loss and said it can provide no assurance that it can survive as a going concern. It also said a $300 million investment deal to shore up its balance sheet had collapsed.

Regarding Taylor Bean Whitaker

Federal agents acceded onto Taylor, Bean & Whitaker Morgage Corp. at the Platinum Financial Center and Platinum Community Bank Monday morning August 3, 2009.

Ocala Police officers answered customer questions and guarded the front doors of the Platinum Community Bank.

Ocala.com

Nothing more available on this one yet

About Colonial

Colonial posted a $606 million second-quarter loss last week, its fifth straight, and said there’s “substantial doubt” the company can survive. A planned $300 million injection by an investor group collapsed and the bank hasn’t met capital requirements to qualify for money from TARP, the $700 billion U.S. bank bailout program.

Katherine Schweit, an FBI spokeswoman in Washington, referred questions to the inspector general for TARP. The TARP agency “confirms that its agents executed two search warrants today in the state of Florida,” according to an e-mailed statement from spokeswoman Kristine Belisle, without specifying the bank. She declined to elaborate, citing the continuing investigation.

Colonial has $26 billion in assets and 355 branches.

Bloomberg

Maybe, just maybe, SPIC Barofsky, whom President Obama tried to fire, IS the man for the job, looks like some real investigations are beginning.

Now, when will they get to Goldman Sachs and do the same thing??

Nice heads up, THX!

Been waiting for this one....Also, CIT stopped trading earlier, it seems their "private bailout" has come undone....

But really folks, nothing to see here,move along... the economy is doing GREAT, just look at that market, will ya!!

Star & Flag for you!

I wonder there has to be a correlation here...

If the FDIC were to seize Colonial, it would be the sixth-largest seizure, by assets, in American history. Such a large failure could strain the bank safety net. Colonial has $20 billion in deposits, while the FDIC insurance fund has dropped below $15 billion. The FDIC wouldn't have to cover every dime, but when Florida's BankUnited, with $12.8 billion in assets, failed earlier this year, it cost regulators nearly $5 billion

market-ticker.org...

So...the FBI instead of the FDIC...
There has got to be a reason my friend...

Originally posted by burntheships
So...the FBI instead of the FDIC...
There has got to be a reason my friend...

Probably because they have some inside dirt on Gubmint Sachs

But anyway..... HEY, LOOK AT THE MARKETS,WILL YA!!!

CIT?

How's about the BAC mess?

SEC files suit for false statements on Merrill deal & then in what has to be a record response, they settle with BAC for $33M

By David Scheer
Aug. 3 (Bloomberg) -- The Securities and Exchange
Commission said it settled a lawsuit filed today against Bank of
America Corp. for $33 million. The bank didn’t admit or deny
wrongdoing as a condition of the settlement, the SEC said in an
e-mailed statement.

Coming straight from the $48 Billion bailout buck we the taxpayer provided them, I'm sure.

The CIT play by play was even more interesting

12:09 PM ET CIT Group amends tender offer on $1 bln in notesMarketwatch
12:09 PM ET CIT: At July 31, CIT Received Tenders For 64.97% Of Notes>CIT
Dow Jones
12:09 PM ET CIT: As Result Of Amendment, Hldrs To Get $875 In Cash Per $1,000 PrincipalDow Jones
12:09 PM ET CIT: Withdrawal Deadline For Offer Extended To Midnight Aug 5
Dow Jones
12:08 PM ET CIT Announces Amendment Of Tender Offer And Interim Tender ResultsDow Jones
12:08 PM ET CIT: Amendment Cuts Minimum Tender Condition TO 58% Of Notes
Dow Jones
12:08 PM ET CIT: Constructive Resolution To Tender Offer >CIT
Dow Jones

and

SAN FRANCISCO (MarketWatch) -- CIT Group Inc. /quotes/comstock/13*!cit/quotes/nls/cit (CIT 1.02, +0.15, +17.24%) said Monday it amended a tender offer for $1 billion in floating rate senior notes due Aug. 17. The bank holding company said it raised the purchase price on the notes to $875 for each $1,000 in principal, from $825 for tenders before Aug. 14. CIT also said it reduced the minimum tender condition to 58% of notes, equal to current commitments. As of July 31, CIT had received tenders for nearly 65% of the notes. Shares of CIT, which were halted earlier, rose 7.8% to 94 cents in recent trading

reply to post by redhatty


Yes, that explains BAC stock moving up

up is down, right is wrong, black is white...

but wouldya just look at those markets!!...

I need GBM to explain all of this to me...



[edit on 3-8-2009 by RolandBrichter]

Originally posted by RolandBrichter

Originally posted by burntheships
So...the FBI instead of the FDIC...
There has got to be a reason my friend...

Probably because they have some inside dirt on Gubmint Sachs

Hummm this is very interesting!
Feds indict Birmingham mayor; Montgomery investor

LANGFORD conspired to solicit and accept bribes from BLOUNT and LAPIERRE to use his influence as President of the Jefferson County Commission and head of the Department of Finance and General Services to include BLOUNT and his company, Blount Parish & Co., Inc., in Jefferson County financial transactions, primarily bond and swap transactions related to Jefferson County's multi-billion dollar sewer debt. Some of the financial transactions were handled through JP Morgan which, as a condition for getting the financing business of the county through LANGFORD, had to pay Blount Parrish fees, or associate Goldman Sachs which then paid Blount Parrish consulting fees........

.....BLOUNT helped LANGFORD obtain a $50,000 six month, unsecured loan from Colonial Bank. When this loan became past due, LAPIERRE obtained a $50,000 loan from Colonial Bank to pay the LANGFORD loan. BLOUNT then transferred $50,000 to LAPIERRE to pay off LAPIERRE'S Colonial Bank loan.(Count 6, paragraphs 8-9, 16-18)

BLOUNT transferred $30,000 to LAPIERRE, who wrote a check to LANGFORD for that same amount

www.wsfa.com...

reply to post by burntheships

So...the FBI instead of the FDIC... There has got to be a reason my friend...

I was wondering about this as well .. why the FBI would be involved. Even if it were criminal activity, given the nature of the crime, the regulatory agencies would still head the investigation, I thought anyways.

Either way, this is the largest bank failure of the year (though I don't think they are officially declaring it a failed bank) .. but when it does go under, the FDIC in all likelihood will be bankrupt.

I personally am not surprised the markets are rallying.. Wall Street is in their own little World.. one were the Economy doesn't matter.

reply to post by burntheships


Wow... round and round the checks went .. lol, had to read it twice just so it would make sense.

reply to post by Rockpuck


Yes...a little ponzi scheme in itself!

Commentary here from background now:
www.backgroundnow.com...

reply to post by burntheships


Oh SNAP, I went to the link & the story has now been edited to remove all the bank names!!!!

Unbelievable!!! (well not really these days)

Originally posted by RolandBrichter
reply to post by redhatty

 

Yes, that explains BAC stock moving up

up is down, right is wrong, black is white...

but wouldya just look at those markets!!...

I need GBM to explain all of this to me...



[edit on 3-8-2009 by RolandBrichter]

If you don't understand it ,why would you comment on it? As a holder of a bunch of CIT shares I can tell you that today's news is positive. First offered failed but only because bondholders figured out CIT was in better shape than previously thought. This is good news for all the market as CIT works with close to one million small businesses who will continue to be able to finance their recievables.

reply to post by Rockpuck


Maybe This Ticker can help you to understand why it's the FBI & not the FDIC

Basically, the FDIC is broke

Got Cash?

reply to post by burntheships


Nice find....

Usually when the FBI is involved in a bank, especially lately, one of the big 5 are involved (CYA measure).

This is getting sooooo fking ridiculous, pardon my french...

The natives are getting restless, something is about to pop.

Originally posted by sligtlyskeptical
If you don't understand it ,why would you comment on it? As a holder of a bunch of CIT shares I can tell you that today's news is positive. First offered failed but only because bondholders figured out CIT was in better shape than previously thought. This is good news for all the market as CIT works with close to one million small businesses who will continue to be able to finance their recievables.

I was being facetious, anyone on ATS who knows me would realize this

You WILL lose your hat with CIT, friend...Good Luck

Originally posted by redhatty
reply to post by Rockpuck

 

Maybe This Ticker can help you to understand why it's the FBI & not the FDIC

Basically, the FDIC is broke

Got Cash?

Posted this yesterday in up to the minute market thread...

Originally posted by redhatty
reply to post by Rockpuck

 

Maybe This Ticker can help you to understand why it's the FBI & not the FDIC

Basically, the FDIC is broke

Got Cash?

Yes it looks like Colonial had sizeable assets...
Have the FBI run cover that way they can reroute it instead...

Whos on first?

reply to post by RolandBrichter


AH I have kinda avoided the Market Thread since my vacation. Too much of one person talking to themselves all the time.

Nice visual (aka Chart Porn!)

Actually a quote in the article sheds some light on why they were probably being investigated:

"the bank hasn’t met capital requirements to qualify for money from TARP, the $700 billion U.S. bank bailout program."

If they do not meet capital requirements to qualify for TARP funding, then this also means that they do not have the minimum federally mandated reserves on deposits at those banks.

It sounds as if they were breaking Federal law by over-extending themselves.

Great... :shk:

I get out 1 day a Month and miss all the "Fun"

Well...shall we wait with baited breath on this one, and see if KD's other two mentions are destined for "Boot Hill" as well?