RIP, Colonial Bank, and Good Luck BB&T
It really IS like WaMu all over again! Hope none of you idiots actually listened to the Google finance people that said BUY BUY BUY. You're DUMB DUMB DUMB!
Well, this little ride has been fun kids but it's over:
11:03 (Dow Jones) Colonial BancGroup (CNB) shares halted since just after the start of today's session as speculation mounts about the troubled bank's future. A Miami judge yesterday, in issuing a restraining order against the bank, said CNB is "on the brink of collapse." CNB recently acknowledged it may not be able to remain a going concern, leading to speculation it could be taken into receivership or sold in a last-minute deal. CNB was down 6c at 41c before the halt.
Bloomberg is reporting that BB&T announced it will take on CNB, after, of course, the FDIC swoops in and cleans out all the nasty stuff on the taxpayer dime.
We'll keep you updated, as this is breaking and details are few and far between.
NEW YORK -- Southeastern regional bank BB&T Corp. has reached an agreement with the Federal Deposit Insurance Corp. to purchase deposits and branches of Montgomery, Ala.,-based Colonial BancGroup Inc., according to a person familiar with the situation.(WSJ)
The deal, approved by the FDIC last night, will take effect after the bank is put into receivership, this person said. BB&T, based in Winston-Salem, N.C., has already dispatched employees to Colonial markets to prepare for the takeover.
Colonial has 355 branches in five states and has about $25 billion in assets. It recently said it might not be able to continue as a going concern.
The FDIC and BB&T are expected to announce the agreement later today.
A BB&T spokeswoman said she could not comment on rumor or speculation. A Colonial spokeswoman could not be reached immediately for comment.
An FDIC spokewoman [sic] also declined to comment.
(major h/t to WC Varones for being my alert while mobile!)