Alabama?s second-largest bank gets closed today

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GeezerMan

GeezerMan

Platinum Member
Jan 28, 2005
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Link

Is the FDIC getting strapped for funds? Not looking good for taxpayers, again....

"Colonial, Alabama?s second-largest bank, is being closed by regulators today, the person said, becoming the largest U.S. bank failure of 2009 after an expansion into Florida saddled the lender with more than $1.7 billion in soured real-estate loans."
 
AyashiKaibutsu

AyashiKaibutsu

Diamond Member
Jan 24, 2004
9,306
3
81
I live in Alabama. It's not really a state more like a third world country vaguely linked to the US. Things that happen here shouldn't be taken seriously.
 
sandorski

sandorski

No Lifer
Oct 10, 1999
70,101
5,640
126
Originally posted by: AyashiKaibutsu
I live in Alabama. It's not really a state more like a third world country vaguely linked to the US. Things that happen here shouldn't be taken seriously.
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At least the Russians didn't invade last year. :laugh:
 
L

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: GeezerMan
Link

Is the FDIC getting strapped for funds? Not looking good for taxpayers, again....

"Colonial, Alabama?s second-largest bank, is being closed by regulators today, the person said, becoming the largest U.S. bank failure of 2009 after an expansion into Florida saddled the lender with more than $1.7 billion in soured real-estate loans."
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Why would it be running out of money from this single bank, or even the smaller ones that've hit already? The net amount paid by FDIC isn't the full amount of deposits.
 
StageLeft

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: JSt0rm01
fdic wont run out of money
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Neither will I, because if I'm about to I'll ask my mommy for some and she'll send it to me. But it doesn't mean I'm not about to run out, either.

Fact is the FDIC has known for months that it could literally run out of money, which is why they have an agreement now to extend their funds well, well above normal levels. There was talk some time ago about half a trillion (normally they have some small tens of billions on tap). I don't know how high the final approval was, though.

Of course it will never "run out of money". The government will just borrow or hell even print more if it has to.

 
J

JS80

Lifer
Oct 24, 2005
26,271
7
81
The question is not "is the FDIC running out of money" it is "how insolvent is the FDIC"?
 
Blackjack200

Blackjack200

Lifer
May 28, 2007
15,995
1,685
126
Probably failed when their president's mattress caught on fire and burned all the money.

$1.6 billion? Pffft, Wall Street banks were losing $10-$20 billion per quarter at the height of the shit storm.
 
PottedMeat

PottedMeat

Lifer
Apr 17, 2002
12,365
475
126
Originally posted by: AyashiKaibutsu
I live in Alabama. It's not really a state more like a third world country vaguely linked to the US. Things that happen here shouldn't be taken seriously.
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LOL.

If that's the way we should think about Alabama, what should we think about Mississippi?
 
BoomerD

BoomerD

No Lifer
Feb 26, 2006
62,933
11,324
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Originally posted by: PottedMeat
Originally posted by: AyashiKaibutsu
I live in Alabama. It's not really a state more like a third world country vaguely linked to the US. Things that happen here shouldn't be taken seriously.
Click to expand...

LOL.

If that's the way we should think about Alabama, what should we think about Mississippi?
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You mean there's a difference? Then what about Loozeeana?
 
MovingTarget

MovingTarget

Diamond Member
Jun 22, 2003
8,999
109
106
Originally posted by: JeffreyLebowski
Originally posted by: DealMonkey
Alabama has a bank?!?
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That was my 1st thought.
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You'd be surprised. Until the latest round of bank mergers and acquisitions, Alabama (Birmingham specifically) was a strong regional banking center. The way the laws were set up here were very conducive to setting up state banks. People think that we are some sort of third world country down here, but then again ignorance knows no bounds. Sad to see Colonial go down though. The Regions/Amsouth merger hurt a lot of people just before the shit hit the fan economically nationwide.
 
H

heyheybooboo

Diamond Member
Jun 29, 2007
6,278
0
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BB&T Set To Take Over Colonial

"" The Best Bank in the Neighborhood ""

Colonial Bancgroup is near the end of the road.

The troubled Montgomery, Ala., lender, unable to raise capital and facing a federal criminal probe of its accounting practices, is expected to become the largest bank failure of 2009. BB&T Corp. ( BBT - news - people ) of Winston Salem, N.C., is expected to take over Colonial's deposits and branches after the Federal Deposit Insurance Corp. seizes the bank.

That could come as early as Friday afternoon. Spokespersons for BB&T and the FDIC declined to comment and a spokesman for Colonial Bancgroup ( CNB - news - people ) wasn't immediately available. But Colonial's stock, which is down more than 80% this year, was halted from trading Friday and rumors of its demise spread quickly through the market.

Colonial has $24 billion in deposits, $25 billion of assets and 355 branches in Florida, Alabama, Georgia, Nevada and Texas, though it has been trying to sell the Nevada operations. It would be the FDIC's 74th takeover this year and its third biggest since the financial crisis began, behind the seizures of Washington Mutual and IndyMac.

So far this year bank failures have cost the FDIC's insurance fund $17 billion.

BB&T had long been seen as a possible acquirer because their branch networks overlap and Colonial would boost its share of several key Southeastern markets. BB&T has $102 billion in deposits, $152 billion of assets and 1,500 branches in 11 states.
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Schadenfroh

Schadenfroh

Elite Member
Mar 8, 2003
38,416
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BB&T Set To Take Over Colonial
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Glad they found a buyer quickly. Hopefully the transition will not be too troublesome for customers and employees.

Originally posted by: MovingTarget
People think that we are some sort of third world country down here, but then again ignorance knows no bounds.
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It is a shame that some people feel that way. Sure there are crappy areas in Alabama, but all states have some crappy areas. I interned for Army R&D at Huntsville, AL. Like many cities, it had some bad neighborhoods, but there were plenty of nice areas, especially Madison (a small city outside of Huntsville).
 
her209

her209

No Lifer
Oct 11, 2000
56,352
11
0
Federal Deposit Insurance Corporation. That implies they collect premiums from the banks, no?
 
StageLeft

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: Schadenfroh
BB&T Set To Take Over Colonial
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Glad they found a buyer quickly. Hopefully the transition will not be too troublesome for customers and employees.

Originally posted by: MovingTarget
People think that we are some sort of third world country down here, but then again ignorance knows no bounds.
Click to expand...

It is a shame that some people feel that way. Sure there are crappy areas in Alabama, but all states have some crappy areas. I interned for Army R&D at Huntsville, AL. Like many cities, it had some bad neighborhoods, but there were plenty of nice areas, especially Madison (a small city outside of Huntsville).
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I lived in Madison for a stint, it was nice.

 
GeezerMan

GeezerMan

Platinum Member
Jan 28, 2005
2,145
26
91
Originally posted by: her209
Federal Deposit Insurance Corporation. That implies they collect premiums from the banks, no?
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If their outlays exceed their premiums, they have a problem that the taxpayers will fix
 
Z

ZeGermans

Banned
Dec 14, 2004
907
0
0
Just dropping in to say if it weren't for the evil socialist communist maoist government-run FDIC literally millions of people would have lost their entire life savings. Wonder how that would have affected the economy.
 
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