on Tuesday filed for Chapter 11 bankruptcy in Alabama's northern district, according to a filing
with the Securities and Exchange Commission
The bankruptcy comes as no real shock, with Colonial BancGroup previously noting in past filings the possible inability for the company to continue as "a going concern."
Then, on August 14, Colonial BancGroup's former banking subsidiary Colonial Bank was shut down by regulators
and its deposits and some assets assumed by Winston-Salem, N.C.-based Branch Bank and Trust (BBT)
in a deal guided by the Federal Deposit Insurance Corp.
BB&T said at the time it would not assume any obligations of holding company Colonial BancGroup, bringing Fitch Ratings
to say it anticipated the company would file for bankruptcy.
Colonial BancGroup files the same week Taylor, Bean & Whitaker Mortgage Corp.
(TBW) announced it is seeking Chapter 11 protection
Taylor Bean's bankruptcy followed weeks of unrest
after Colonial Bank -- a major lender to TBW -- confirmed it was complying with an investigation
into its mortgage warehouse lending facility.
Write to Diana Golobay