Federal agents executed a raid on Colonial Bank’s headquarters in Orlando Florida in conjunction with the US Treasury’s TARP fund program. Almost nothing is known about the raid, what they were looking for, or what they found.
Colonial BancGroup stock is down 19.67% at the time of this article and is down an amazing 94% on the year. Colonial Bank announced on monday that a $300 million investment with Taylor, Bean & Whitaker Mortgage Co had fallen through.
Colonial Bank was issued a cease and desist order by the regulators last month. If Colonial Bank were to go down, which it looks like it’s going to, it will be the largest bank failure so far this year.