By: David Mildenberg and Justin Blum
Source: bloomberg.com
With search warrant in hand, the Federal Bureau of Investigation (FBI) and TARP’s inspector general conducted a raid of Colonial Bank Regional headquarters in Orlando, Florida. The search led to the removal of documents and computer towers.
Colonial Bank posted a $606 million lost at the end of the 2009 second quarter, its fifth straight, and there’s great concern whether the bank can survive. A planned $300 million injection by an investor group failed and the bank was not eligible to receive TARP money of $550 million under the bailout program, as it failed to qualify.
The bank listed about $25.5 billion in assets and more than $20 billion in deposits at midyear, which would rank Colonial’s potential failure among the biggest of 2009. Colonial fell 12 cents, or 20 percent, to 49 cents at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 76 percent this year.
