Colonial BancGroup may become biggest bank failure of '09

Colonial BancGroup may become biggest bank failure of '09

Shares of Colonial /quotes/comstock/13*!cnb/quotes/nls/cnb (CNB 0.41, -0.06, -11.94%) dropped 12% to 41 cents before being halted Friday morning.

BB&T Corp. /quotes/comstock/13*!bbt/quotes/nls/bbt (BBT 28.35, +0.12, +0.43%) is expected to take over the Montgomery, Ala.-based bank as early as Friday, according to reports by Bloomberg News and The Wall Street Journal's online edition.

The deal will be supported by the Federal Deposit Insurance Corp., Bloomberg and the Journal reported.

In Washington, FDIC spokesman David Barr declined to comment.

Shares of BB&T rose 5% to $27.08

(visit the link for the full news article)

It's official now. Yet another giant has been brought to its knees. Thank God for the FDIC, but it's still amazing to me that these Titans are falling down one after the other like dominos. I personally don't think this phenomenon gets enough attention...another Friday another couple of failed banks...no big deal.

Colonial BancGroup Shutdown by regulators










(visit the link for the full news article)

[edit on 14-8-2009 by IDK88]