Colonial BancGroup Among Five Failed Banks
August 14, 2009 by Stephen Kersey
Filed under Business
Another week, another set a failed banks. However, this time there was a big fish in the net. Colonial BancGroup, which had assets of approximately $25 billion, was shut down by federal regulators on Friday — the biggest bank failure in the United States in 2009.
Colonial BancGroup was sold to BB&T, a bank based in North Carolina. All of Colonial BancGroup’s 346 branches will open as BB&T branches on Saturday. Colonial BancGroup had branches in a number of states including Texas, Nevada, Georgia and Florida.
Four other banks were shut down by federal regulators on Friday: Community Bank of Arizona, Community Bank of Nevada, Union Bank and Dwelling House Savings and Loan Association.
Community Bank of Arizona and Union Bank, both of which were based in Arizona, have been taken over by MidFirst Bank — a bank based in Oklahoma City.
PNC Financial Services Group, which is based in Pennsylvania, will take over Dwelling House Savings and Loan Association. Dwelling House was also based in Pennsylvania.
As for the Community Bank of Nevada, the FDIC will open a temporary bank owned by the government and will give depositors about a month to find another bank.
FDIC Seal (Image: Flickr)
