Colonial BancGroup Files Chapter 11 Bankruptcy
Colonial BancGroup 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.