August 15, 2009
Colonial BancGroup sold to BB&T
The Federal Deposit Insurance Corp. says it has sold failed southern U.S. bank Colonial BancGroup Inc. to BB&T Corp.
The Wall Street Journal's MarketWatch reported the FDIC seized the Alabama lending company Friday, marking the largest bank failure to take place in 2009.
MarketWatch said BB&T Corp. agreed to purchase nearly $22 billion of BancGroup's assets, which were estimated at the end of June to total $25 billion.
The remaining BancGroup asset will remain with the FDIC as the insurance group will attempt to sell the assets later.
BB&T Corp. and the FDIC will share losses of Colonial assets worth $15 billion and the Colonial deal is expected to cost the FDIC's Deposit Insurance Fund nearly $2.8 billion.
MarketWatch said so far in 2009, a total of 78 banks have failed.