Colonial BancGroup Inc, whose banking unit was shut down by the government and sold to BB&T Corp earlier this month, has filed for Chapter 11 bankruptcy protection.
The the Montgomery-based real estate lender listed debts of US$380 million and assets of just US$45 million in its filing on Tuesday in US Bankruptcy Court in the Middle District of Alabama. A list of creditors holding the 20 largest unsecured claims shows that Bank of New York Trust Co has a US$253.7 million claim and Bank of New York Trust Co of Florida, a US$104.1 million claim.
With about US$25 billion in deposits, Colonial Bank represents the largest US bank failure so far this year, and the sixth-largest in US history. The FDIC sold most of its deposits, 346 branches in five states and about US$22 billion in assets to BB&T.
Colonial Bank’s collapse is expected to cost the insurance fund US$2.8 billion.
Colonial BancGroup remains under criminal investigation by the US Justice Department over alleged accounting irregularities at its mortgage warehouse lending unit in Orlando, Florida. It also was the subject of a Securities and Exchange Commission investigation related to its bid for federal bailout funds and its accounting for loan loss reserves.
The company posted losses for several straight quarters, as it wrote off millions in residential construction and mortgage loans, most tied to hard-hit markets in Florida. Delinquencies on commercial real estate loans remain a hot spot of potential trouble for many regional banks, as many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans.
Taylor, Bean & Whitaker Mortgage Corp, one of the US’ biggest independent mortgage bankers, said on Monday it filed for bankruptcy protection in the wake of Colonial Bank’s failure. Colonial had been Taylor Bean’s primary bank.
The Ministry of the Interior (MOI) is to tighten rules for candidates running for public office, requiring them to declare that they do not hold a Chinese household registration or passport, and that they possess no other foreign citizenship. The requirement was set out in a draft amendment to the Enforcement Rules of the Public Officials Election and Recall Act (公職人員選舉罷免法 ) released by the ministry on Thursday. Under the proposal, candidates would need to make the declaration when submitting their registration forms, which would be published in the official election bulletin. The move follows the removal of several elected officials who were
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
FOUR DESIGNATED AREAS: Notices were issued for live-fire exercises in waters south and northwest of Penghu, northeast of Keelung and west of Kaohsiung, they said The military is planning three major annual exercises across the army, navy and air force this month, with the navy’s “Hai Chiang” (海強, “Sea Strong”) drills running from today through Thursday, the Ministry of National Defense said yesterday. The Hai Chiang exercise, which is to take place in waters surrounding Taiwan, would feature P-3C Orion maritime patrol aircraft and S-70C anti-submarine helicopters, the ministry said, adding that the drills aim to bolster the nation’s offshore defensive capabilities. China has intensified military and psychological pressure against Taiwan, repeatedly sending warplanes and vessels into areas near the nation’s air defense identification zone and across
A Chinese takeover of Taiwan would severely threaten the national security of the US, Japan, the Philippines and other nations, while global economic losses could reach US$10 trillion, National Security Council Deputy Secretary-General Lin Fei-fan (林飛帆) wrote in an article published yesterday in Foreign Affairs. “The future of Taiwan is not merely a regional concern; it is a test of whether the international order can withstand the pressure of authoritarian expansionism,” Lin wrote in the article titled “Taiwan’s Plan for Peace Through Strength — How Investments in Resilience Can Deter Beijing.” Chinese President Xi Jinping’s (習近平) intent to take Taiwan by force
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