BB&T in for a Beating? More Trouble with Colonial, Alabama Banking Regulators, and Richmond Fed's Reputation
Alright, maybe "beating" isn't the right word. I just wanted an excuse to alliterate and mention beatings. Sorry, it's been a long frustrating day.
Charlotte Business Journal:
So knowing they've got a beating on the horizon, are they really considering this Colonial Bank M&A? Color me skeptical but I expect better out of our libertarian friends.
Matthews-based home builder J.S. Kempf & Associates Inc. has filed for Chapter 7 bankruptcy liquidation, according to a filing with the U.S. Bankruptcy Court for the Western District of North Carolina.
J.S. Kempf, which has built at The Club at Longview in Weddington, lists liabilities of less than $10 million and assets of less than $50,000.
BB&T Corp. (BBT) of Winston-Salem is listed as one of the company’s largest unsecured creditors, owed more than $2 million.
The company says it has between 50 and 99 creditors.
Via the Montgomery Advertiser:
Colonial (CNB) announced Tuesday that financial irregularities make it impossible for the bank to currently report how much money it has lost or how much money it still has.
Tuesday, Colonial filed a report with the Securities and Exchange Commission saying the bank will not formally report its second-quarter financial statement because of irregularities found in the federal investigation.
"The Company has been informed that the alleged accounting irregularities relate to more than one year's audited financial statements and regulatory financial reporting, and the Company's Board of Directors and Audit Committee are making every effort to determine the impact of these alleged accounting irregularities on the Company's financial statements and regulatory financial reporting," Colonial said in Tuesday's filing.
"BancGroup's management and board of directors are assessing the impact of these recent events on the Company's financial position and results of operations, and as a result, BancGroup is unable to file its Quarterly Report on Form 10-Q for the period ended June 30, 2009 within the prescribed time period."
Colonial also said that the irregularities make it unsure of how much money it lost in the second quarter or how much it has.
"Pending completion of the investigation discussed above and determination of any potential impact on BancGroup's financial statements, the Company is not in a position to quantify the financial position as of June 30, 2009 or the results for the three or six months ended June 30, 2009," Colonial said.
But wait, it gets better. Alabama state regulators abruptly changed their meeting date to discuss the Colonial matter, shooing away a reporter who'd planned to attend and sending the red flags flying.
The rabbit hole goes on and on. I sincerely hope BB&T realizes before its too late that just because it says "Eat Me", they shouldn't necessarily put it in their mouths.
On Friday, the board had announced that it planned to meet at 10 a.m. today to discuss allowing Harrison to seize troubled Colonial BancGroup. On Tuesday, the Montgomery Advertiser called to verify the time and location of the meeting and was told by Bressler the meeting had been canceled.
She repeatedly declined to answer questions about whether the board took any public vote and declined requests to supply minutes from the meeting.
Bressler said the change in meeting date had been publicized on the Alabama Secretary of State's Web site, which records meetings of public boards. The notice that the meeting was being moved up to 4 p.m. Monday was posted on the site at 12:20 p.m. Monday. No agenda was listed for what was described as "an emergency meeting."
State law also requires most boards to give at least 24 hours notice before a special or called meeting. A board may hold an emergency meeting, but only if providing 24 hours notice "is prevented by emergency circumstances requiring immediate action to avoid physical injury to persons or damage to property." The law also allows for an emergency meeting to accept the resignation of a public official or employee.
Now is the time for regulators to step in and cockblock BB&T if they are actually considering Colonial as a viable acquisition; let Bank of America be the bastard child of Richmond Fed regulators, BB&T is the star of the Fifth District and we would like to see it stay that way. Come on, accounting fraud? That's not very libertarian.