Items Tagged with 'Colonial Bank'

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  • PwC ordered to pay $625M to FDIC over Taylor, Bean & Whitaker/Colonial Bank audits

    Federal judge awards damages over auditor’s “negligent” conduct
    A federal judge this week ordered PricewaterhouseCoopers to pay more than $625 million to the Federal Deposit Insurance Corp. due to the auditor’s failure to discover the house of cards that was the mortgage business of Taylor, Bean & Whitaker. Click the headline for the full story.
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  • Federal judge finds PwC negligent in Taylor, Bean & Whitaker/Colonial Bank audits

    Lawsuit brought by FDIC after Colonial Bank’s failure
    One of the most prominent ghosts of the financial crisis is back in the news again: Taylor, Bean & Whitaker. Late last week, a federal judge ruled that PricewaterhouseCoopers was “negligent” in its role as the auditor of Colonial Bank, which funded many of TBW's mortgages before it became one of the largest bank failures in the country's history.
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  • PwC settles $5.5 billion lawsuit over Taylor, Bean & Whitaker audits

    Accused of failing to recognize malfeasance in TBW, Colonial Bank accounts
    The ghost of Taylor, Bean & Whitaker struck again Friday, as PricewaterhouseCoopers agreed to settle a $5.5 billion lawsuit that accused the company of failing in its audits duties by not discovering the accounting malfeasance that led to one of the most spectacular crashes to come out of the housing crisis.
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  • MBA nominates Colonial Savings’ J. David Motley to be 2016 vice chair

    Currently sits on MBA’s board of governors
    The Mortgage Bankers Association announced that it nominated J. David Motley, president of Colonial Savings, based in Fort Worth, Texas, and its divisions, Colonial National Mortgage, CU Members Mortgage, and Community Bankers Mortgage, to be its vice chair for the MBA’s 2016 membership year.
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  • FHFA watchdog: GSEs still at risk of TBW-style scams

    Counterparty risk still real threat
    In a new report, the FHFA’s watchdog warns that the government-sponsored enterprises and their government counterpart, Ginnie Mae, must make improvements in several areas to avoid a recurrence of the multi-billon dollar losses that were suffered at the hands of Taylor, Bean & Whitaker chairman Lee Farkas, who is now behind bars, and his co-conspirators.
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  • 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."
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  • National Australia Bank Nabs Challenger's Mortgage Ops

    The trend of larger financial institutions gobbling up other firms or divisions of their business to form conglomerate mortgage-lending entities -- similar to Branch Bank and Trust's [stock BBT][/stock] recent takeover of Colonial Bank's assets -- is not isolated to US institutions. National Australia Bank agreed to acquire mortgage operation segments of Sydney-based Challenger Financial Services Group.
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  • FDIC Puts Colonial's Costly Issues to Rest, $2.8bn Later

    Troubles appear to be winding down to an end for Montgomery, Ala.-based Colonial Bank after it agreed to an order to cease and desist and then saw its mortgage warehouse lending facility come under close inspection by federal agents. The Alabama State Banking Department on Friday closed Colonial Bank, which the Federal Deposit Insurance Corp. (FDIC) estimates will cost $2.8bn to its deposit insurance fund, HousingWire first covered this weekend.
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  • Two Bank Failures Push '09 Count to 25

    Another two bank failures announced late Friday pushed the running total to 25 banks shut down by federal regulators so far this year, marking a substantial increase from the pace of bank failures seen last year. As of April 2008, regulators had closed only two banks, demonstrating the continued effects of deteriorating financial markets on U.S. banks. Friday’s bank failures will cost an estimated $84m to the Federal Deposit Insurance Corp. (FDIC) insurance fund. The failures put a total $452m in combined assets  on the line for purchase or disposition.
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